Hey Paul,

This is a great question. I unfortunately have to give an answer I hate to give: "It Depends".

It depends on the Motivation of the Seller, the Persuasion of the Acquirer and Overall Market Environment (interest rates, SBA Rules and Regulations, etc.).

From what I'm hearing in my peer network of Searchers is that Seller financing is a more preferred method of financing than it was before our current interest rates (Market Environment).

If you've got your game tight, meaning you know the advantages/benefits Seller Finance gives to the Seller (i.e. You can offer him more for the Acquisition because you don't have to deal with the high interest rates, there's a clear tax benefit for the Seller if he/she chooses to do Seller Finance), Seller finance is a normal way to acquire

A lot of the times, you'll find out how motivated a Seller is to get the deal done if he or she accepts Seller Finance as a mode of Finance.



Hope this helps and to your success,

Ovais

This is 100% accurate, what portion of the sale is the Seller willing to finance through a Seller's note. This is also easier to work with in the long run. The Seller gets some money now (Tax Benefit) and recurring revenue through note and interest payments.

If I interpreted what Sven said correctly. (Please correct me if I'm wrong).