Seller carryback — also called seller financing or owner financing — is when the person selling a home acts as the lender instead of a bank. Rather than receiving a lump sum at closing, the seller receives monthly payments from the buyer over an agreed period of time.
Think of it this way: instead of the buyer going to a bank for a loan, they come to you. You receive principal and interest payments every month, just like a bank would — except the money comes directly to you.
For us, seller financing provides more flexibility than traditional bank lending. It allows us to move faster, close on your timeline, and structure deals in ways that benefit both parties — without months of underwriting delays.
It also allows us to pay closer to full market value for your home because we're not constrained by what a bank will or won't approve.
You don't need to own your home outright — but you do need meaningful equity. Since you'll be carrying a significant portion of the purchase price as the lender, there needs to be enough equity in the property to make that work. The more equity you have, the more straightforward the deal structure.
If there's an existing mortgage, it doesn't automatically disqualify you. We simply work with the numbers to make sure the deal makes financial sense for both sides. The best way to find out where you stand is to have a quick conversation — just tell us roughly what you owe and what you think the home is worth, and we can tell you right away whether seller carryback is a viable option for your situation.
We focus on rent-ready residential properties in New Mexico — homes that are in good condition and ready for a tenant to move in. This includes single-family homes, duplexes, and small multi-family properties.
We do not purchase homes that require significant repairs or renovation. If your home is well-maintained, it's likely a great fit.
We primarily serve the greater Albuquerque area including Rio Rancho, Bernalillo, and surrounding New Mexico communities. If you're unsure whether your property falls within our area, just give us a call at (509) 554-8782 — we're happy to discuss it.
We evaluate your property based on its condition, location, comparable sales, and current market conditions. Because we use seller financing rather than bank loans, we're often able to offer purchase prices closer to full market value than traditional cash buyers.
We'll always walk you through how we arrived at our offer so you can evaluate it clearly and fairly.
Interest rates are negotiated directly between us — there's no bank dictating the terms. Seller carryback rates are typically competitive and often higher than what you'd earn from a savings account, CD, or money market fund.
We'll propose a rate and term structure that makes sense for both parties, and you're always free to negotiate or walk away if it doesn't meet your needs.
The loan term is negotiable and can be structured to fit your goals. Common arrangements include:
Fully amortized loans: You receive equal monthly payments of principal and interest over 15–30 years until the balance is paid off.
Balloon payment loans: You receive monthly payments for a set period (e.g. 5–10 years), then receive the remaining balance in one lump sum. This is popular for sellers who want income now but also want a larger payout down the road.
We can build a balloon payment into the agreement upfront — so you know exactly when you'll receive the remaining balance.
Additionally, seller carryback notes can sometimes be sold to third-party note buyers if you need to access your equity before the term ends. This is a separate process and the note is typically sold at a discount, but it's a real option worth knowing about.
Very little. We cover standard closing costs. You won't pay real estate agent commissions (typically 5–6% of the sale price), inspection fees, or repair costs. This means you keep significantly more of your equity compared to a traditional listing.
Step 1 — Initial conversation: You reach out and we have a no-pressure call to learn about your property and your goals. This typically takes 15–20 minutes.
Step 2 — Property review: We'll schedule a time to view the property and gather the information needed to put together an offer.
Step 3 — Offer presentation: We present a written offer with all terms clearly spelled out — purchase price, interest rate, loan term, payment amount, and any balloon payment structure.
Step 4 — Negotiation and agreement: You review the offer with your attorney or advisor. We're open to negotiating terms that work for both sides.
Step 5 — Closing: We work with a title company to prepare the promissory note, deed of trust, and other closing documents. We close and you begin receiving monthly payments.
Because we don't rely on bank financing, we can close significantly faster than traditional buyers. Most of our transactions close within 7–21 days of reaching an agreement. If you need to close quickly — or need more time — we can accommodate your timeline.
We buy rent-ready homes — meaning properties in good, livable condition. We're not expecting perfection, but the home should be in a state where a tenant could move in without major work needed.
We do not buy homes requiring significant repairs. If your home is well-maintained, you likely won't need to make any changes before closing.
We recommend using a loan servicing company to handle the monthly payment collection and record-keeping. This is a third-party service that collects payments from us and routes them to you — creating a professional paper trail and ensuring everything is properly documented.
Loan servicing typically costs around $15–25/month and is well worth the peace of mind for both parties. We can discuss servicer options at closing.
Your loan is secured by a recorded deed of trust (the equivalent of a mortgage) on the property. This means if we ever fail to make payments, you have the legal right to foreclose on the property and take it back — just like a bank would.
The deed of trust is recorded with the county, making your security interest a matter of public record.
If we were to default on payments, your deed of trust gives you the right to initiate foreclosure proceedings and reclaim ownership of the property. This is the same legal protection a bank has when it lends money on a property.
New Mexico has established foreclosure laws that govern this process. We strongly recommend working with a real estate attorney to understand your rights and ensure the documents are structured correctly at closing.
Yes — we strongly encourage it. A real estate attorney can review the promissory note, deed of trust, and closing documents to make sure your interests are fully protected. The cost is typically a few hundred dollars and is money well spent.
We have nothing to hide and fully support you bringing independent legal counsel to the table. A well-structured deal protects everyone.
Yes. We close through a licensed title company, which handles the preparation and recording of all documents, the title search, and the transfer of ownership. This ensures the transaction is properly documented and that the title is clean at closing.
The primary documents in a seller carryback transaction are:
Promissory note: The written promise from us to repay the loan, outlining the loan amount, interest rate, payment schedule, and any balloon terms.
Deed of trust: The document that secures the promissory note against the property and gives you foreclosure rights in the event of default.
Grant deed or warranty deed: Transfers ownership of the property to us at closing.
Your attorney and the title company will walk you through each document before you sign.
Seller carryback sales are generally treated as installment sales for federal tax purposes. This means rather than paying tax on your entire gain in the year of sale, you may be able to spread the taxable gain across the years you receive payments.
This can be a significant advantage for sellers with a large gain on appreciated property. However, tax rules are complex and your situation is unique — always work with a qualified CPA or tax advisor before making any decisions based on tax considerations.
Yes. The interest portion of each monthly payment you receive is generally treated as ordinary income and is taxable in the year you receive it. Your loan servicer or CPA can help you track what portion of each payment is interest versus principal return.
Generally, if you sell your installment note to a third party (such as a note buyer) to receive a lump sum, the remaining deferred gain may become taxable in that year. This is one of the tradeoffs of accessing your equity early. Your tax advisor can model out the implications for your specific situation.
That's completely understandable — and seller carryback may not be right for everyone. If a clean, one-time cash sale is your priority, a traditional listing or conventional cash buyer might be the better fit.
Seller carryback tends to work best for homeowners who want more than a one-time check — whether that's monthly income, tax deferral, or a higher net sale price over time. If you're unsure, we're happy to talk through both options with no pressure.
We believe trust is earned through transparency, not just promised. Here's what we offer:
We close through licensed title companies. We encourage you to bring your own attorney. All terms are in writing. We'll walk you through every document before you sign anything. And we're happy to provide references from sellers we've worked with.
We're local investors with a long-term stake in this community. Our reputation depends on doing right by the people we work with.
Not at all. Seller carryback is simply a different way to receive payment for your home — instead of a lump sum from a bank, you receive payments directly from the buyer. The legal documents are straightforward and a title company and attorney will guide you through every step.
We take the time to explain every detail in plain language. If something isn't clear, we'll keep explaining until it is. You should never feel pressured to sign anything you don't fully understand.
Until you sign the closing documents, you are not obligated to proceed. Our initial offer and any purchase agreement will include a review period during which you can walk away. We never pressure sellers — our goal is a deal that genuinely makes sense for you.
We'd love to hear from you. Call or text us at (509) 554-8782 — we're happy to answer any questions without any obligation or pressure. Or fill out our contact form and we'll reach out within 24 hours.