No. Sellers aren’t borrowing money. Instead, part of their equity is carried forward as a secured note in second position. This allows sellers to keep their equity working while still getting cash at closing.
02
Typically, sellers receive 20–30% of the purchase price upfront, with the remainder carried as equity in a secured note that accrues interest until payoff.
03
That’s flexible. Carried equity can be structured as interest-only, deferred, or balloon-only, with a final payoff typically in 5–8 years.
04
Yes. By carrying equity instead of taking all cash at once, many sellers can defer capital gains over several years. (Consult a CPA for details.)
