Seller financing - rates??

[Kirsten Mastro]

Hello BP community.

I am going to be structuring my first seller finance deal.  The buyer doesn't have great credit and another local investor has offered to co-sign.   I am unsure of what interest rate to charge the buyer.   I know it should be higher than a bank would offer and less than what a hard money loan would cost.  I'm thinking of a 2 or 3 yr. balloon. 

Also- I've heard that structuring as a land contract deal would make it easier to take the property back in case the buyer doesn't pay as agreed.

Any advice? 

Thanks for your input.!