Doriel Properties LLC

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In Consideration of Seller Financing

Doriel Properties, like many investors, uses a variety of financing sources to structure transactions when the numbers make sense for both buyer and seller. In some cases, properties are best sold using seller financing or a combination of bank financing and seller financing to improve cash-on-cash return.

Selling commercial real estate with owner financing offers significant advantages, including the ability to potentially achieve the full asking price, a faster and more flexible closing process, and a steady, interest-earning passive income stream. Sellers can also attract a wider pool of buyers, defer capital gains taxes, and maintain security in the property.

The seller-financed note can include a defined term with a balloon payment due within a few years, allowing the seller to receive full payment in a structured and timely manner while still benefiting from seller financing advantages.

Key Advantages for Sellers

Full Asking Price and Better Terms: Seller financing adds flexibility and convenience, often allowing sellers to achieve full asking price.
Steady Income Stream: Sellers act as the bank, receiving consistent monthly payments, often at interest rates higher than traditional investment returns.
Income Without Tenant Management: Strong monthly NOI continues without the responsibilities of property management or tenant issues.
Tax Advantages (Installment Sale): Potential to defer capital gains taxes by spreading the tax burden over multiple years instead of paying it all at closing.
Faster Closing Process: Without bank underwriting, appraisals, and rigid lending requirements, transactions can close significantly faster.

Expanded Buyer Pool: Attracts buyers who may not qualify for traditional financing, including investors with non-traditional income or those seeking better leverage and cash flow efficiency.
Security in the Asset: In the event of default, the seller retains a lien or title position, enabling potential repossession while preserving down payment, improvements, and equity gains from increased NOI or principal paydown.
Selling the Note for Early Cash-Out: Sellers may later sell the note to another investor or note buyer for a lump sum, as these income streams are secured by real estate and in demand among investors.

In Consideration of Seller Financing

Key Advantages for Sellers

Explore Seller Financing Opportunities

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