Seller Financing Rates

by a searcher

2 months ago

Curious to hear what rates people are negotiating on seller financing. I'm currently negotiating a 10% seller note, with a two year full set aside, 10 year amort, 5 year balloon. Seller proposed 8% interest rate which I countered at 5%, Seller came back at 7%. 

Thank you!

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21 comments

searcher from University of Cambridge

~7% sounds like the ball park range

1 month ago | like reply | 0 likes

searcher

I negotiated a seller's note for my acquisition last summer at a rate of 7.75%. Annual amortization, and a 5 year term. We negotiated it as prime (at the time of close) minus one percent.

1 month ago | like reply | 0 likes

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