Structuring Payments to the Seller

Instalments, interest, balloon payments and affordability

A seller-finance deal is not really a price but a payment schedule, and two schedules with the same headline price can differ enormously in what they cost and whether you can survive them. This book is about the shape of that money: what goes to the seller on day one, what is paid monthly, whether interest applies, what lump sum falls due at the end, and whether the whole arrangement is affordable once every real cost is counted. It explains the numbers that matter, where to find reliable local data for free, and why the monthly instalment must be covered by honest income from the property. You will see the costs seller finance adds and the ordinary costs it moves into unusual places. The structure is stress-tested against a bad month, a void and a rate rise, and a complete worked example follows one deal from first conversation to final payment. It ends with a calculator and the legal questions it cannot answer. Next in this series: “The Legal Reality of Vendor Finance”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress-testing for the bad month, the void, the rate rise
• A complete worked example, start to finish
• Your deal calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.