How do I complete the deal.....

[Daniel Bork]

I have a complicated question for all you creative wholesalers out there . So I have a 4 unit property under contract. I just received an offer from someone who wants to come in with half cash and owner finance the rest with a short term ( 3-5 yr ) deal. I'm not sure on 1) how to structure the lending part. the 3-5 yr part for the balance

2) what terms should I set for monthly payments

3) I'm in NY which is a judicial state do I have to use a lawyer

4) what are the risks for the property owner and myself

5) when and from who do I get my assignment fee

6) If they have that much cash why not just get a loan

Thank you in advance for the advice !!!

[Tom S.]

@Daniel Bork  I'm in Vermont next door to you, and yes, an attorney should draw up the paperwork for you.  I've done a few seller finance deals (on the buying side), and it shouldn't be too expensive, maybe $1,000 tops.

The terms are whatever you guys agree to.  Typically terms I've used are 5% interest, 30 year amortization, 5 year balloon.  

There are lots of reasons why the person isn't getting a loan even though they have that much cash: could be maxed on the number of loans (10 usually). credit issues, contractor (1099) employment, etc  It can sometimes help if the buyer can provide a credit report to make the seller feel more comfortable.

Good luck and welcome to BP!

- Tom