Seller Financing Potential

[Mark Smith]

Hello everyone,

I am interested in purchasing a two unit, and there is potential for seller financing.  This would work out well for me since I don't have cash for a down payment, and the seller is a friend of the family so I could probably get away without making a down payment.  Can someone explain to me the basics of how this works?  I have done a little research on good old Google, so I'm just trying to really understand.  It sounds like I just execute a promissory note with the seller for a short term with a balloon payment at the end, by which time I will be able to refinance and pay off the seller.  Also, the house will need some work as the current owner lives there and smokes...would I just go to the bank and take out a personal loan of some sort to do the work?  Thank you!