Anyone in the New Orleans area familiar with Selling financing?

[Devin DeNoux]

I have 3 potential multifamily deals and looking at the possibility of doing seller finance. Just trying to get some answers about loans towards the balloon and rehab.

[Stephen Keighery]

Hey Devin, good work getting seller financing on those properties. The issue with getting a loan towards the rehab is that it will be in second position as the seller will be in first. It doesn't make it impossible but will rule out a lot of private money funds. Getting a partner who can fund the rehab could be another option. How long is the balloon? You need to be careful with that as who knows what financing will be like when it comes due (Imagine you have it come due back in March when Covid first hit). If you can negotiate no balloon that would be ideal. I know a lot of the seller financing experts say that "Balloons are for clowns". I am sure you can work around it if the deal is good enough though.