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Seller financing from my perspective-- real situation that happened

Be careful what you wish for when it comes to seller financing and getting investors for your business. When we bought our place 4 years ago the seller financed a small portion. It was a nightmare. She thought she could still run the place and tell us what to do because she had a "vested interest" in the place. After a couple of months we had enough. We had our lawyer intervene and get her off our backs. We also threatened to walk on the lease if the landlord didn't give us our own lease instead of one in her name that was already existing. We paid her off in one year instead of the five year term we had.
I would never go seller financing again unless the seller knows from the beginning that they are not welcome to run or interfere with MY business after the sale (unless I missed my payments.)
Also the thought of having investors to answer to personally makes me ill. Make sure it is worth the aggravation before you committ to a business if you need finance any portion of the busines

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Answers (2)
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The BAF Group LLC
MD

It is similar to having a "silent" partner: They rarely are! Silent, that is.

Feb 23, 2010
Robert Cutler
Attorney
New York County, NY

John, thank you for sharing these experiences. Hopefully those who read this posting will understand that they need to proceed cautiously and consult with qualified professionals before seeking seller financing or raising any money from investors.

Feb 23, 2010

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