Note Holders - Credit/Interest Rate Question

[Steve M.]

Thinking about selling a couple properties and carrying the note.

Questions:
1) What do you require down? (ex: 10%, 20%, 25%, etc...)
2) Pull Credit?
3) Interest rate you charge?

Any other words of advice outside of making sure my lawyer locks everything down appropriately.

Thanks!

[Loc R.]

If credit is good, 10% is the minimum I would require.

If credit is poor, 25% is the minimum I would require.

In either case, I'd charge 8-10%, fully amortize it, and schedule it over 10 years max.

If it's NOO (i.e., to an investor), I'd require 20% down, and play with the numbers so that the monthly payment leaves some room for the investor to cash flow.