Owner Financing Deal

[Beau Griggs]

I have a deal going for two rental properties with owner financing. The terms are that he'll carry the note for five years with 6.25 ballon 15 years amoratized and no repayment penalty. I think I understand the terms but am hoping that someone might be able to explain it a littl better and also some advice as to any gotchas or anything that I should be aware of.

This is my first rental property deal and first deal in my new area so I want to get this one right. 

Thanks

Beau

[Steve Vaughan]

Most of mine are at 6% with 10% down. Try and have your balloon be extendable with an additional buydown of $x. Balloons represent a huge risk for you obviously.

Are they proposing a Note and DofT or RE Contract?