Below are 10 examples of a seller carry back as an option for a no money down commercial property purchase:
- Full carry back: The seller agrees to finance the entire purchase price of the property, allowing the buyer to make payments directly to the seller instead of a traditional lender.
- Partial carry back: The seller agrees to finance a portion of the purchase price, while the buyer secures financing from a traditional lender for the remaining amount.
- Balloon payment: The seller agrees to finance the purchase price for a specified period of time (e.g. 5 years) with a large, final payment due at the end of that period.
- Installment payments: The seller agrees to finance the purchase price with equal monthly payments over a specified period of time (e.g. 10 years).
- Interest-only payments: The seller agrees to finance the purchase price with interest-only payments for a specified period of time (e.g. 3 years), with a larger payment due at the end of that period.
- Deferred payments: The seller agrees to finance the purchase price with no payments due for a specified period of time (e.g. 1 year), allowing the buyer time to generate cash flow from the property before beginning payments.
- Adjustable rate: The seller agrees to finance the purchase price with an adjustable interest rate that changes over time based on market conditions.
- Fixed rate: The seller agrees to finance the purchase price with a fixed interest rate for the entire loan term.
- Personal guarantee: The seller requires a personal guarantee from the buyer (or another individual) to ensure payment of the loan.
- Collateral: The seller requires additional collateral (such as a personal property or other real estate) to secure the loan.
