For many investors, navigating the complexities of real estate finance comes down to one central question: how to structure a deal that maximizes returns while minimizing risk. Dr. Connor Robertson, a Canadian-born entrepreneur and real estate expert, believes one of the most overlooked strategies lies in the use of seller credits, an arrangement in a real estate transaction where the seller agrees to cover certain closing costs on behalf of the buyer. With a background that spans healthcare, entrepreneurship, and property development, Dr. Robertson has built a reputation in identifying creative financial structures that many buyers overlook. Approaching real estate with a community-focused mindset, he’s helping the real estate industry become more sustainable for buyers and tenants alike.
The Difference Between Price Reductions and Seller Credits
Buyers’ first instinct in negotiations is often to seek a price reduction. According to Dr. Robertson, that this may not always be the most effective approach. “Price reductions and seller credits are very different, understanding that difference can make a huge impact on your returns,” he says. A seller credit, unlike a price cut, directly reduces the amount of cash a buyer must bring to the closing table. That distinction matters, especially for investors who are concerned about capital efficiency. For example, on a million-dollar property with a 20 percent down payment, a seller credit can cut immediate costs by tens of thousands of dollars without changing the property’s appraised value.
Why Cash at Closing Matters
One of the most important insights Dr. Robertson emphasizes is that the immediate benefit of a seller credit often outweighs the long-term impact of a modest price reduction. “If you’re putting $200,000 down on an investment property and your cash flow is $10,000 a year, that’s a 5 percent cash-on-cash return. But if you negotiate a $25,000 seller credit, your down payment drops to $175,000 while your cash flow stays the same. Suddenly your return improves without waiting years for the small savings from a lower purchase price to add up.”That difference compounds when viewed against inflation and the time value of money. “Saving $25,000 in today’s dollars is significantly more valuable than saving $20 a month over the next decade.”
Structuring Smarter Deals
Seller credits are just one tool among many in the real estate investor’s toolkit, but Robertson sees them as a particularly underutilized strategy. They can be especially valuable when financing through traditional banks, where terms are less flexible than in alternative arrangements such as seller financing or assuming a mortgage. “The next time you go to buy a piece of real estate, you should consider all of your options,” he advises. “Seller finance, subject-to financing, assuming mortgages — they’re all strategies worth exploring. But even if your only option is a bank loan, you can still negotiate seller credits to strengthen your position.” This approach not only reduces the upfront financial burden but also enhances overall return on investment. For early stage investors looking to scale into the short-term rental market, focusing on liquidity at closing can create meaningful leverage for future growth.
Expert Insights for Investors
Having co-founded a firm that helped redefine the vacation rental market, Dr. Robertson has seen firsthand how creative deal structures can accelerate growth for both new and seasoned investors. For him, the bigger picture is always about maximizing efficiency. By shifting focus from small monthly savings to larger upfront advantages, investors can improve returns, preserve capital, and create more opportunities for growth. “When used strategically, seller credits can give buyers additional negotiating power.”
Those looking to deepen their knowledge of real estate investment strategies can connect with Dr. Connor Robertson on LinkedIn or visit his website.
