Welcome to BREC: Real Estate Money Plays
Each week, we break down one real estate strategy: What it is, How it works, and How people actually make money from it. Let’s go!
Intro
Real estate doesn’t have to start with a bank. But that’s where most deals begin.
Go to a bank. Get approved. Put money down. Close.
That’s the standard path.
But it’s not the only one.
And in some cases… it’s not even the best one.
The Play: Seller Financing
Buy property directly from the seller…without using a traditional bank.
Instead of borrowing from a lender…
You negotiate terms with the person who owns the property.
The seller becomes the bank.
You agree on:
- Purchase price
- Down payment
- Monthly payment
- Timeline
And the deal moves forward…without traditional financing.
Why It Works
This approach creates flexibility.
✔ Potentially lower upfront cash
✔ Faster closings (no bank delays)
✔ Custom terms based on the deal
✔ Access to opportunities others can’t pursue
And most importantly:
***You remove the biggest gatekeeper—bank approval
How It Actually Happens
Seller financing usually shows up in situations like:
- Properties that have been sitting on the market
- Owners who don’t need all the cash upfront
- Landlords ready to exit but open to steady income
The deal is structured with:
- A promissory note (your agreement to pay)
- A mortgage or deed of trust (secured against the property)
- Defined payment terms and schedule
In some cases:
- Payments are spread over years
- A balloon payment may be due later
- Terms are negotiated based on leverage and motivation
***This isn’t informal. It’s legally structured.
What Most People Miss
Not every seller will say yes.
And not every deal should be structured this way.
Common mistakes:
- Overpaying just to get “creative terms”
- Ignoring the long-term payment structure
- Underestimating balloon payment risk
- Not documenting the deal properly
***Flexibility is powerful…but only if the deal still makes sense.
Who This Is For (and Not For)
This is for:
- Investors who understand deal fundamentals
- Buyers willing to negotiate and communicate
- People looking for alternatives to traditional financing
- Those who can spot motivated sellers
This is NOT for:
- Buyers who haven’t analyzed deals before
- People avoiding due diligence
- Anyone expecting “easy” deals
- Those without a clear repayment plan
Bottom Line: This Works If…
- The deal makes sense independent of financing
- The seller is motivated and flexible
- You clearly define and document all terms
- You understand the long-term structure
Because in real estate…
The advantage isn’t just finding deals.
It’s knowing how to structure them.
The investors who understand this…
Don’t just rely on banks.
They create opportunities.
Education only. Not financial, legal, or tax advice. Do your own research & consult a licensed professional.