First Seller Financed Deal

[Darel Ison]

Hello,

I am getting close to locking down the contract of a package of 5 Duplexes in Ohio. The Seller has agreed to seller financing verbally. The terms so far are good. 10% down, 7% interest, payments of P&I, balloon after 2 years. My only reason for doing this, is that I do not have the 20% liquid to get a commercial loan right now. After 2 years, I will have paid it down and will have funds to refinance it later. I am trying to get the rate down a bit, but am happy with the terms otherwise. 

I have asked for them to disclose any Debt they have on the properties, and am still doing my due diligence,

For those that have done a deal like this in the past, what should I watch out for in the terms of a seller financed note?

Any advice is welcome:-)

Thanks,

Darel