Owner Financing- Terms, Expectations, Keeping Seller Safe...

[Kasie Smith]

I am representing a seller as their agent, and they would like to offer Owner Financing. I understand I am obligated to direct them to their nearest attorney to draw up the note, etc. But what are some fair terms that you've seen for deals? This is an $850k equine facility, the owner and I agree that offering terms will open it up to a lot of people getting started in the business- just want to have some idea of what he can/should offer, and things to watch out for!

Thank you!

[Don Konipol]

Assuming the property does not have major issues such as deferred maintenance or lacks desirability, accepting anything less than 20% down, minimum, is asking for problems.  In today's very low interest rate environment, something in the 6-8% interest rate range usually works for both parties.