Seller Financing ~ Buyer requesting

3 Replies


I’m selling my duplex for $168,500.  The buyer wants to buy as an investment property and is asking me to finance their deal.  I own the property free and clear.  They will pay full price with $8000 down.  I’m new to this as I’m usually the investor.  My question is, since DP is so low what should I charge as interest?  Should I use a loan servicing company?  Any thoughts or pitfalls to be aware of? Balloon payment/Terms? 

Thank you!


@Michelle McAlister DP is a function of risk < 5% down. Banks ask 20-25% down for non owner occupied. What are the cost of foreclosing? NJ it takes 3 years before it is settled. Can he continue to collect the rent the whole time. For argument's sake the duplex has $2000 per month income. he can collect $72000 for the $8000 investment. Recourse or non recourse loan. Personally liable. Contract for deed or mortgage and note or deed of trust. If I was not looking for income for long term I would look at 30 year amortized due in 5. When I bought my house on a contract for deed, I paid 3% over prevailing rate.

@Michelle McAlister your new to the forums. Recommend you update your profile with the city and state and you can get more specific advice. To acknowledge or to ask further questions of specific people use the @ sign and start typing their name. Several names will appear outside the box. double click and it will populate the box in blue and then they will be notified.