Seller Carry Back Financing

You might be asked by potential real estate buyers to assist in the financing of their purchase of your real property.  This means they are asking you to carry back an installment note or promissory note, which is often referred to as "Seller Financing," "Seller Carry Back Financing," or a "Seller Carry Back Note."  It may also take the form of a Land Contract or Contract for Deed depending on what state you are located in.

Seller carry back financing can be a very powerful tools when negotiating and structuring real estate transactions, especially in rising interest rate environments, distressed real estate markets and tight credit markets.  This type of financing can also be a very effective income tax planning and/or estate tax planning strategy for you if you do not want to 1031 Exchange into other like-kind replacement properties.