HELP! How do I structure this deal??
Hiya BP! My favorite place to be!
I picked up a property in NM about a year ago. I have a tenet that is interested in buying, but they have terrible credit. The property is a double-wide on 50 acres. I don't believe it is a permanent structure. This combinationmakes getting a loan down the road troublesome.
The numbers are as follows:
Purchase: 85k, 10% down, 6% interest, 5 year balloon
Current Balance: 75k
Remaining term: 4 years.
Agreed purchase price: 170k
How would I best structure this for the buyer? I was thinking either a lease option with a 4 year term, 5% option fee; or seller finance with a wrap around loan.
I'm struggling to find out what would be in my best interest, while making it reasonable for the tenet. I feel like I'm in a good situation, but can't wrap my head around the best 2-3 options to propose to the buyer.
HELP!