seller Financing - Not typical deal

[Andrew Lax]

So this is somewhat of a personal question.

I am selling my Primary and moving to a condo on the beach - recently empty nest and dont need the space ... 

It should sell around 1.2M and I dont have a mortgage - so the proceeds were either going into CD's or maybe doing some Private Lending.

But I am considering possibly holding some short term financing for the Buyer ..

Any thoughts on this ?

Thanks !! 

[Patrick Roberts]

If you sold for cash and this money would just sit in a CD or similar fixed income asset, then seller financing is probably a solid option if you are ok with the associated risk. If you sell to a homebuyer/owner-occupant, make sure you use an RMLO to stay in compliance with Dodd-Frank and whatever state laws FL has. Even though you should be exempted from some of the requirements, you still want to follow them for extra layers of protection. 

I would give some thought to future exit plans when you structure the deal with your buyer. You can put a balloon if you want, but you may be forced to foreclose if they cant refi or sell when the time comes. I would set the note up so that you can sell if in the future as an exit if needed.