The Three-Option Approach: Why Smart Sellers Choose Flexibility Over One-Size-Fits-All Solutions
- mjmpropertygroup
- Sep 18
- 4 min read
Updated: Oct 15
Most property sellers think they have only two choices: list with a realtor and hope for the best, or sell to a cash investor for a quick but low-ball offer. But what if there was a third way – or better yet, what if you could see all your options clearly laid out and choose the one that best fits your specific situation?
That's exactly what my three-option approach provides: complete transparency and choice, so you can make the decision that's truly right for your circumstances.
Why Most Sellers Get Limited Options
Traditional Realtors can only offer one solution: list your property and wait for retail buyers. This works great when you have a move-in-ready property and plenty of time, but it's not ideal for every situation.
Typical Cash Investors usually present just one low-ball cash offer with a "take it or leave it" attitude. They're not interested in creative solutions that might work better for you.
The Problem: Neither approach considers your unique financial goals, timeline, or tax situation. You're forced into their preferred method rather than finding what actually works best for you.
Introducing the Three-Option Letter of Intent
When I evaluate your property, I don't just make one offer – I present three distinct options, each designed for different priorities and situations. Here's how it typically works:
Option 1: All Cash Purchase
Best for: Speed, simplicity, immediate liquidity
Timeline: Close in 2-3 weeks
Price: Lower (reflects quick sale and as-is condition)
Example: $400,000 cash for a $500,000 property
Benefits: No repairs, no realtor fees, guaranteed closing
Option 2: Seller Financing with Interest
Best for: Higher price with immediate monthly income
Timeline: 30-45 days to close
Price: Moderate (reflects financing premium)
Example: $450,000 with monthly payments including interest
Benefits: Higher price than cash, immediate income stream
Option 3: Principal-Only Seller Financing
Best for: Maximum price and tax advantages
Timeline: 30-45 days to close
Price: Highest (often full asking price or above)
Example: $500,000+ with principal-only payments initially
Benefits: Best price, maximum tax deferral, estate planning advantages
Real-World Example: The $500,000 Property
Let me show you how this works with a sample scenario:
Your Situation: You own a $500,000 property free and clear. You're retired, don't need all the cash immediately, but want to stop being a landlord.
Option 1 - Cash ($400,000):
Immediate $400,000 in your bank account
Earning maybe 2-3% in CDs = $8,000-$12,000 annually
Large capital gains tax bill in year of sale
Clean break, no ongoing relationship
Option 2 - Seller Financing with Interest ($450,000):
$45,000 down payment (10%)
Monthly payments of approximately $1,250 (including interest)
Annual income: $15,000
Capital gains spread over 5 years
Option 3 - Principal-Only Financing ($500,000):
$50,000 down payment (10%)
Principal-only payments of $1,500/month initially
Annual income: $18,000 (increasing when interest is added later)
Maximum tax advantages (installment sale) and estate planning benefits- consult a CPA or attorney.
Highest total return over time
Why This Approach Works
Complete Transparency: You see exactly what each option provides, with no hidden agendas or pressure tactics.
Informed Decision-Making: You can consult with your attorney, CPA, and financial advisor to determine which option best fits your overall financial plan.
No Regrets: When you choose from multiple options, you know you made the best decision for your situation rather than wondering "what if."
Professional Flexibility: This approach requires deep understanding of real estate finance, tax implications, and legal structures – not something every investor can offer.
Matching Options to Your Situation
Choose Cash If You:
Need money immediately for another investment or major expense
Want the simplest possible transaction
Don't want any ongoing relationship or payments
Have a property that needs significant work
Choose Interest-Bearing Seller Financing If You:
Want higher price than cash but immediate income
Need monthly cash flow right away
Prefer traditional loan structure
Want balance between price and simplicity
Choose Principal-Only Seller Financing If You:
Want maximum price for your property
Don't need immediate high monthly income
Are interested in tax advantages
Have strong estate planning considerations
Want the highest long-term return
The Professional Difference
Not every investor can offer this level of flexibility. It requires:
Deep Market Knowledge: Understanding what properties are truly worth in different scenarios
Financial Expertise: Structuring deals that work for both parties long-term
Legal Understanding: Ensuring all options are properly documented and protected
Proven Track Record: Having the experience and resources to follow through on commitments
With 20 years of local investing experience and a VP-level corporate finance background, I bring institutional-quality analysis to every property evaluation.
Your Next Step
If you're considering selling your Rhode Island or Southeastern Massachusetts property, why limit yourself to one option when you could see all the possibilities?
The three-option approach costs you nothing to explore, but it could save you thousands of dollars or provide significantly better terms than you thought possible. Whether you ultimately choose cash, seller financing, or decide to list traditionally, you'll make that decision with complete information about all your alternatives.
Contact me today to receive your personalized three-option analysis. No pressure, no obligations – just professional options that put you in control of your property sale decision.
By embracing seller financing, you can unlock new opportunities in the real estate market. Take the time to educate yourself, consult professionals, and create a solid plan. Your investment journey can be rewarding and successful with the right approach.
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