Creative Financing Opinions

[Cody Thompson]

So I'm working on my first real Estate deal. The seller is someone I've known for a long time and we are going to work out a seller financing option next Saturday. I don't know if anyone has ever done a deal like this so I would like some opinions. So she expressed a starting point 260k. My idea is to sell her on a purchase price of more like 130-150k but with something high like 10% interest. Her main concern is to get around 1200 a month. So my thoughts are to do a low loan amount with a high interest for on what would be a 30 year mortgage but then after 5 years it would go to like a 10 year mortgage with a lower interest rate. So essentially she would still get around 1200 a month for the life of the loan. And I would pay it off in only 15 years. While the first 5 years I would have huge interest write offs. What is everyone's thoughts on this?

[Mark A.]

Or you could offer to pay their requested selling price but get in for low money down, low interest rate, and a longer amortization period so that the monthly payment comes out to their desired monthly income. Seller financing can be whatever you both agree on but meeting the seller's price and making it work for you in the terms of the deal seems to me like a win for both of you.