: Expect to put down a significant amount—often 10% to 25% —to prove you are a serious operator and to protect the seller's equity. 4. Risks to Watch Out For
: Instead of a bank providing a mortgage, the person selling the B&B acts as the lender.
: Many seller-financed deals are short-term (e.g., 5 years). At the end of the term, a "balloon payment" for the remaining balance is due, usually requiring the buyer to refinance with a bank at that point.