Updated about 5 years ago on . Most recent reply
Seller financing balloon payment, need help structuring deal
My friend is selling their property, its a townhouse rental. It will be an off market deal and I was considering doing seller financing because then I wont need to put 15-20% down as i would from a bank. I am trying to out figure the best way to structure the deal. I have never done this before and I am looking for guidance on how it works. I was thinking I can give them a small down payment 5-10k then do a 7 year term at 6% and have the balloon payment due then. I am wondering how to value the property if I reach the end of the 7 year window, any advice would be greatly appreciated. Also is it easy to secure financing in situations like this from a bank or credit union.