TITLE:
Filling the Gap: Seller Finance Comparison to Traditional Bank Loans*
AUTHORS:
Denis Burke
KEYWORDS:
Real Estate Investment, Real Estate Purchase, Seller Carry, Seller Finance
JOURNAL NAME:
Journal of Financial Risk Management,
Vol.14 No.4,
November
20,
2025
ABSTRACT: An often-overlooked lending alternative to the traditional bank loan process for purchasing investment real estate is seller financing. Many residential real estate investors conform to a traditional loan process when investing in real property. The article employed a mixed-methods approach, examining the economic and banking lending literature and a case study conducted by the researcher to investigate the use of seller financing. Results from a grounded theory comparative analysis of the seller financing and lending processes are presented, along with the benefits and additional considerations to consider when using seller financing. The study finds that seller financing is a creative lending option that can be utilized in all 50 states for buying or selling real estate, regardless of the state of the US economy or variations in interest rates. Seller financing offers the potential to help fill the financing gap created by tightening economic conditions.