In a market saturated with properties for sale and Buyers that are having a tough time securing financing, today's Sellers need to get creative and Seller financing could be a great solution.  Whether the Buyer needs a swing loan until permanent financing is secured or if they are asking the Seller to provide that long-term financing, seller financing can be a win-win for both the Seller and Buyer. 

The Seller, A/K/A the Exchanger, is able to get the sale closed at the price they want and could have a good investment vehicle with a steady return for an agreed upon term.  The Buyer is able to secure the financing they need without losing the desired property.  If the property is held for business use or investment and the Seller wishes to defer the gain through a 1031 exchange, he will need to get even more creative because the amount of the seller financing cannot be deferred through the exchange.   

With planning, there are several ways to successfully defer all of the gain even when providing seller financing but in order to use any of these options the Note must be between the Buyer and the qualified intermediary (QI) and all payments must be made payable to the QI.  

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