Many storage owners have heard the term seller financing or owner carry or creative structuring but have never been shown clearly how it works or why it is used. Because of that, it is common for owners to dismiss the idea before they understand the benefits. Seller financing is not complicated and it is not a trick. It is simply an alternative way to structure a sale that can create advantages for both sides when it is done correctly. My goal here is not to talk you into anything. It is to give you a clear and easy to understand explanation so you can decide for yourself if this approach could be a good fit for your situation and long term plans.

Seller financing is simply a normal real estate sale where the seller agrees to receive payments over time instead of the buyer using a bank for the entire amount. The deed transfers at closing just like any other sale, and the payments made to the seller are protected by the property itself. There are many ways to set up a seller financed arrangement, but the purpose is always similar. The goal is to remove unnecessary bank involvement, speed up the closing process, lower the amount of red tape, and keep more of the value in the hands of the buyer and the seller. Seller financing can also be used even when an existing loan is already in place. There are proven structures that work around current financing and allow the deal to move forward smoothly.

Traditional lenders often take a large portion of the value out of a sale. When a bank is involved, it limits what a buyer can offer and pushes prices downward. When a seller chooses to finance the sale, the value stays between the two parties instead of being lost to fees and interest charged by a lender.
The biggest challenge in today’s market is the cost of borrowing. Interest rates have caused buyers to reduce their offers simply because the property cannot support expensive bank debt. When a seller offers a fair and sensible interest rate, the numbers immediately improve. This often allows for a stronger sale price and steady monthly income, which can create a better return than a traditional lump sum sale.
Banks also introduce a lot of hurdles. They control leverage, increase the required down payment, slow the process with layers of underwriting, and sometimes force a price that does not reflect the true value between the buyer and the seller.

Having a current loan on the property does not prevent seller financing. In fact, this is one of the most common situations we work with. The sale can be structured so the seller provides financing for the full price while the existing loan remains in place. We make one monthly payment and from that payment a portion goes toward the current mortgage and the remaining amount goes directly to the seller. To keep everything organized and protected, a third party note service handles the payments. They collect our monthly payment, pay the lender on the existing loan, and then send the remaining funds to the seller. This keeps the original loan in good standing, reduces the balance over time, and allows the seller to earn the difference between the payment received and the amount owed on the underlying loan.

Seller financing is a strong option in many situations, but it is not the best choice for every seller. It may not work well if you need all of the sale proceeds immediately for another investment, a new business, a 1031 exchange, or if you want a clean exit with no future payments. Some owners prefer a single lump sum at closing because it meets their liquidity needs, financial goals, or estate planning requirements. If that describes your situation, a traditional cash or bank financed sale may serve you better.

The process is simple. We start by agreeing on the purchase price and the basic terms. Attorneys then prepare the Promissory Note and the Deed of Trust or Mortgage so your protections are clearly stated. Closing takes place through a regular title or escrow company, the same way any traditional sale would. After closing, you receive your monthly payments on the schedule we agreed on, followed by a final payoff at the end of the term.

Read how this attorney explains the basics of seller financing — and why it’s becoming a more common strategy in real estate and storage acquisitions.
https://thlg.law/blog/seller-financing-in-real-estate-an-overview

Explore how this CPA breaks down installment sales and seller-financed deals — and how these structures can help investors manage taxes, smooth cash flow, and create more flexible exit options in real estate.
https://www.troutcpa.com/blog/installment-sales-and-seller-financing-for-real-estate-investors

Learn how this real estate educator outlines three creative seller-financing structures — and how investors use them to unlock deals, reduce upfront capital needs, and negotiate terms that work for both sides.
https://www.creuniversity.com/articles/top-3-creative-seller-financing-options