: Instead of a bank providing a mortgage, the person selling the B&B acts as the lender.
Before entering a seller-financed B&B deal, consider these common structural elements: b&b buy here pay here
: Ensure the loan is publicly recorded to protect both parties' interests. : Instead of a bank providing a mortgage,
: You bypass the lengthy appraisal and underwriting processes required by major lenders. b&b buy here pay here
: You make your "mortgage" payments directly to the former owner rather than a financial institution.
: If you can't refinance when the balloon payment is due, you could lose the property and all the equity you've paid in.
Traditional banks are often hesitant to finance B&Bs because they are viewed as high-risk "lifestyle businesses" rather than standard commercial real estate.