Seller financing · investor buyers · select deals only
Buy with terms.
We act as the bank.
On select properties, BM Direct finances the sale ourselves. You put money down at closing and make monthly payments to us instead of a bank. Look for the black-and-yellow Seller Financing Available badge on the deal board.
Seller financing is offered to investor buyers. Terms shown are examples, subject to approval and a final written agreement. This is not a loan offer.
Plain English
What is seller financing?
BM Direct owns the property and acts as the bank. You pay a down payment at closing, then make monthly payments to us instead of getting a mortgage from a lender. In Ohio we use a standard promissory note secured by a recorded mortgage on the property until the loan is paid off. You get the deed at closing.
- No bank approvalNo lender underwriting, appraisal or loan committee holding up the deal.
- Less cash up frontA smaller down payment than most bank loans want, with no origination points or lender fees.
- Close fasterDays instead of the usual 30–45 for a bank loan.
Illustrative example
What the terms can look like
Every deal sets its own terms. These numbers are an illustration only — not the terms on any listing. Each listing shows its own price and terms, or we give them to you on request.
| Purchase price | $100,000 |
|---|---|
| Down payment (10%) | $10,000 |
| Amount financed (held by BM Direct) | $90,000 |
| Interest rate | 8% |
| Amortization (payment spread over) | 30 years |
| Balloon (remaining balance due) | 5 years |
| Monthly payment (principal + interest) | ≈ $660 |
| Balance due at balloon (refinance or sell) | ≈ $85,563 |
| Rent | $1,200 |
|---|---|
| Payment to BM Direct (P&I) | −$660 |
| Taxes + insurance | −$200 |
| Repairs, vacancy, management reserve | −$180 |
| Cash flow | ≈ $160 |
In this illustration that's about $1,900 a year on $10,000 down — roughly a 19% cash-on-cash return — and the tenant pays the loan down by about $750 in year one. The buyer also pays property taxes and insurance. Your actual rent, taxes, costs and terms will differ.
Why investors use it
More doors, less cash.
- Less cash per propertyBanks often want 20–25% down plus closing costs. At 10% down, $50,000 can cover five illustrative deals instead of two.
- No bank in the wayNo lender credit pull, income docs, debt-to-income ratio or appraisal holding things up — and no 10-financed-property cap.
- Cheaper than hard moneyHard money often runs around 12% plus 2–4 points, due in 6–12 months. A longer amortization gives you far more time.
- Cash flow from day oneSee the illustrative rental above.
- Time to add valueA multi-year balloon gives you time to rehab, raise rents, build a rent history, then refinance or sell.
- You keep the upsideYou own the property, so appreciation and your improvements are yours.
Straight talk
The tradeoffs
We'd rather say this plainly than hide it.
- Balloon riskIf rates are high or the property underperforms when the balloon comes due, refinancing gets harder.
- Rate may be higherThe rate can be higher than a conventional mortgage. You're paying for speed, flexibility and less cash down.
- Default means foreclosureIf you stop paying, we foreclose on the mortgage and you can lose your down payment and equity.
Why BM Direct
Why we offer terms
- More buyers can say yesTerms open our deals to landlords who are maxed out on bank loans or can't wait on a lender.
- We stand behind the dealWe own the property we're financing. The note is in writing and the mortgage is recorded.
- Skin in the game on both sidesYour down payment and our note keep everyone aligned.
How you know
Badge + filter = seller financing available
- Seller Financing Available badgeBlack and yellow, on the deal photo. Seller Financing Available
- Seller financing filterTap the chip above the deal board to show only those deals.
- Estimate paymentWhen a listing has terms posted, tap Estimate payment on the card and change the down payment. If terms aren't posted yet, ask us.
- No badge? Cash.Untagged deals are cash purchases.
Reference calculator
Run the numbers
Educational only. Starts on the illustrative example above, not any listing's terms.
Illustrative estimate. Principal and interest only; excludes taxes and insurance. Terms shown are examples, subject to approval and a final written agreement. This is not a loan offer.
FAQ
Quick answers
- Who is this for?
Investor buyers purchasing rentals or resale projects. If you plan to live in the home, tell us on the form — owner-occupant requests go through a separate process.
- Is the card price the financed price?
The card shows the cash price. If a deal has its own seller-finance price or terms, they're shown on the card; otherwise ask us.
- How is it documented?
A promissory note and a mortgage recorded with the county. You take title at closing.
- Want to become the bank yourself?
That's a different topic — see Slow Flips.
Next steps
Ready to buy with terms?
Browse tagged deals, ask for terms, or join the VIP list and tell us you want seller-finance deals.
Seller financing offered to investor buyers on select properties only. All figures on this page are illustrative. Terms shown are examples, subject to approval and a final written agreement. This is not a loan offer.