Advice on Seller Financing

[Trevor Dominique]

Hello,

I am 22 years old and me are my partner are starting to think about doing our third deal. 

We have a local investor in our hometown looking to retire and sell his rentals, and we are an interested buyer. 

Particularly, trying to do a seller financed deal is intriguing to us. For our first two deals, we received private loans from a family member, but we probably will not have access to more money moving forward. Thus, I have some general seller financing questions.

1. What general advice do you have when presenting a seller with the option to do a seller financed deal?

2. What interest rate range is typical (very roughly; I know it will vary from market to market) for these deals?

3. Any advice on the term of the deal? 15 year vs 30 year? Or something other time frame?

4. Are most attorneys familiar with this type of deal? I would imagine a decent amount of legal work would have to occur so that the seller has appropriate collateral to make seller financing low risk for them. 

Thanks for the advice!