320 - A Great Question From The Seller Finance Mastery Program Q&A!

0:00Earlier this week, I did a video on the number one questions I got this week. And that was a question from the Seller Finance Mastery Program Q &A. But in this podcast, I want to also do a great question from the Seller Finance Mastery Program Q &A. And it's pretty central to the reason we do seller finance. And it was a question that was the following. What are the best points of seller finance that sellers seem to like more? So we know why we like seller finance more, but what are the benefits to sellers? So there are a few. One, if they open up seller finance, they will certainly attract more buyers, which means you have to, if that happens, present a case which shows that you are different from the other people they're talking to.

0:57So that's really a benefit for the seller, obviously more potential buyers. But the number one reason that I see is they can get a higher potential sales price. There are ad backs that you will do that a bank might not do that will increase the EBITDA and hence will increase their purchase price. as opposed to the bank getting the loan interest. If they are the lien holder in seller finance, which they are, they will get the interest on the loan. They might have, depending upon how it was structured, reduced capital gains tax, but that's something that the experts need to weigh in on from a legal and accounting standpoint.

1:44They have a continued income stream in retirement or semi-retirement. They often can complete a faster sale. And I think there's increased buyer confidence in business performance. There is a closer relationship between the seller and the buyer than would be with a bank. And therefore, you can generate trust, hopefully. and you can both be on the same page of making sure that the business succeeds because the seller understands that the payments that he is receiving or she is receiving come directly from the performance of the business. And oftentimes there's lower seller costs as well. Additionally, it can provide a smoother transition for employees and customers.

2:39is more of a time to introduce the buyer and go through that and get the buy-in of the seller as well. And sometimes you have less competition from buyers' banks, and by that I mean there are conditions that banks might put on and that would restrict business performance that you would not have potentially with a seller. And one of the most important things for a seller is they are in the first position as opposed to a bank, meaning that if something goes wrong with the business, which shouldn't be the case because they're going to be running the business, that the bank doesn't come in and cover its position first.

3:23But in the case of seller finance, the seller is in the first position. So if something goes wrong, they foreclose and they get the business back, which is super important or should be super important to them in that the first position is obviously much, much better than the second position. And obviously it has enhanced buyer motivation, which can be a benefit not only to the buyer, but the seller as well. So those are the reasons that come to mind. We talk a lot about those and the specific details around them in the Seller Finance Mastery Program. The first two weeks of that are completed. They are uploaded into the Kajabi account, which is on-demand viewing.

4:12So if you have not joined us and want to join us, you won't miss anything. You can go back and watch those too, but you could continue on with the remaining four live presentations and live Q &As, which will give you a chance to ask questions. So I have had better response than I've ever had on a course before. That's encouraging, and I think it shows for a lot of people that they wonder if bank financing they'll qualify for and see seller finance as another option, which it certainly is, and it's the one that I prefer first to throw as the first pitch. So I hope that helps answer that question.

4:53What are the best points of seller finance? Does sellers seem to like more? And if you want to join us, just go to brucewhipple.com, go to the boot camp and classes, You'll see the Seller Finance Mastery Program there. If you want to go there directly, just go to brucewhipple.com forward slash seller finance. But it's been well received, well attended, good questions. And I hope you decide if you're serious about this business acquisition that it's a tool that you should have in your arsenal. So look forward to seeing you join us if that's what you want to do. And hopefully it is.