Need help wording a seller-financing proposal
First go at offering a seller financing deal, and I'm a little unsure if I'm wording the offer correctly. Here are the numbers:
4plex for $156k
- I'm offering to pay ALL of the buyer's/seller's closing costs, and pay both agent commissions (3%). It's basically a down payment of $14,000.
- The note principal is still based off of the full $156k, since there wasn't a reduction in principal.
- $156k @ 4% interest, amortized over 20yrs with a 5 year balloon
- They receive a payment of $945.33 for 60 months (total of $56,700)
- When I refi after the 5 years (unless they want to continue), they receive the remaining principal balance of $99,300
Is this a win-win for both sides? The 5 years might seem a little long to the sellers. I'd go as short as 3 yrs if they wanted to cash out quicker than 5
Thoughts?