Selling Portfolio with Owner Financing

[Sean H.]

I built up my rental portfolio over the past few years and am now looking to sell it.  I built it in blue collar neighborhoods and the management process is not something I am interested in participating in anymore.  I realize that because of the location of the properties, I will probably have to hold some of the paper if I want to sell as a package

I have begun discussions with an interested buyer who is questioning what equity he would receive, if he is responsible for maintenance/repairs, if the sale does not ultimately happen.  He offered for major repairs (roofing, windows, etc.) to have the out of pocket expenses split between me and him or to have the payments credited towards a portion of the principal.  

To me, I believe I should respond that he is effectively the owner of the properties and will receive the deed after he satisfies the balloon payment.  It would be no different than if he purchased the properties from a seller using a bank loan, whereby the bank would not credit a major repair towards principal.  

For others who have sold properties or portfolios with owner financing in place, is it common to offer portions of equity or principal credit for major repairs?  

[Brandon Hicks]

I've bought quite a few properties using seller financing and have always looked from the same point of view as you do. From day one, they're mine just as if I'd paid cash.