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Updated almost 5 years ago on . Most recent reply

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Larry Lee
  • Rental Property Investor
  • Forest Hills, NY
0
Votes |
2
Posts

Seller Financing Help Needed

Larry Lee
  • Rental Property Investor
  • Forest Hills, NY
Posted

We were approached by a buyer with a seller financing offer.  We have no mortgage on the property.

10% down payment

6% interest amortized for 30 years but with a balloon payment due at the end of five years

We'll be taking a loss with the offer price but with the 6% interest for 5 years, we are about break even.
Our biggest concern is if they default, we don't know anything about the foreclosure process. 

Someone had mentioned we can sell the private note.

Appreciate any insight.

Most Popular Reply

User Stats

77
Posts
34
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Lee Judd
  • Lender
  • Logan, NM
34
Votes |
77
Posts
Lee Judd
  • Lender
  • Logan, NM
Replied

@Larry Lee

I agree with Chris and David. Make a counter offer to your buyer on terms you like. No reason you shouldn't get price you want and work for the buyer. I have gotten 8.5% interest on the two I sold like that and got market price or higher because I am willing to owner finance. Get financials from your buyer and do as much underwriting on them as you can. You are the bank now. See what their debt to income ratio is. I would want it under 40% at least.

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