Seller Finance deal for Investors

[Gursewak Singh]

Buyer can't get approved due to not having 2 years of taxes returns. Also, they have I-90 status(I believe you can file Taxes but no SSN), Not sure if this is issue as well.  Not my buyer, another Realtor reached out to me and see if I could carry their note.  

Can someone help, I am very hesitant to do this deal..? 

House for sale $ 95000.00( On MLS)

ARV 103000

Down Payment 20%( Buyer have total $23000 per their realtor) 

Buyers realtor would like to submit an offer for 90K (assuming offer gets  accepted @ 90k) on this house but would like to double close on this property. (She wants to collect double commission) I also hold Real estate license as well.  She is willing to raise her clients contract to 98K, put 20% down of 98K to me. Have me carry  the note for $78,400 @ 9% for 20 years. 

Does this sounds right to anyone who has done this? 

Do I need to get appraisal done? 

What points am I missing?

Any help would be tremendous. 

[Jason Dillard]

@Gursewak Singh We do deals like this all the time. Think like a paper buyer. What is my all in up front cost?(present value) How much a month will I be getting?(payment) How long will payments come in?(periods) What do I get at end?(future value) Plug the numbers in a financial calculator and get your yield. (You can download a calculator to your smart phone that's easy to use) If you like the return with the risk of that buyer and house, then close. Go ahead and offer 80k on house and see what happens. Your buyer will probably be happy at 100k. No need to advertise what you paid for it to your buyer. Increase that spread, and your return goes up. You do need to have 2 closings to have your buyer on title and you have the paper. If you are paying all cash, this makes sense. If you are getting a loan on your purchase, you won't give title to your buyer. You'll sell with a lease option or contract for deed. You'll need advise from a local investor on what's legal and best in your market. We like to leverage into our deals like this. So we borrow the 65k against the 100k house from a private lender at 6%. Then we wrap that loan with the 80k loan when we sell. So our IRR is infinity. There is no present value (our up front investment) to put in the calculator. By the way, my CCIM 101 teacher was from Texas. She called that up front investment your 'whoop out'. It's the cash you have to 'whoop out' your pocket to do the deal. The 'whoop out' is a negative number in your calculator. It came out, not in, so it's negative. Thats help me remember how to use the calculator ever since.