Seller Financing - Pitfall or Potential?

[Scott Minton]

I'm very new to real estate investing and with my very first property (purchased at Oklahoma County tax lien resale), I made a big mistake and ended up with a vacant property that needs work, just to become marketable.  That's a long and slightly embarrassing story, so I'll get to the point.  The land assesses for $12,000.  I paid $10,200 and am likely going to need to hire an attorney to file quiet title, which will be $2500-$3500.  The land is in a C neighborhood area, but for the most part, not a bad area.  Houses in the neighborhood average $55,000-$65,000.  Trying not to let my mistake get the better of me, I'm trying to sell the land and simply recoup most of what I have into it.  I've had a couple people express interest in the land, but so far, none have wanted to pay $15,000, which is what I'm currently asking.  I've only had a sign in the yard for a couple weeks, so hopefully will still have others ask about it.  However, I had a caller this evening who asked if I would seller finance the property.  Again, there's no home on the lot.  He said he would eventually like to build something there.  Since I have no experience in seller financing, I told him I would need to think about it.  He said he would be willing to pay 10% down.  We didn't talk about any other terms.  I didn't get any suspicious gut-feeling from the conversation, which is why I'm now considering it and trying to do some research first.  It's not a lot of money, but I'd rather not have it tied up in this property.  However, as there are no new houses in this neighborhood (everything else is about 25-45 years old) and there are several other vacant lots (although most are in much better shape than mine) if I have an interested party, why shouldn't I consider it?  Other than having the cash tied up for a few years, what are the pitfalls and dangers?  What are the benefits?  What should my terms be?  Is there an easy DIY contract for this or will I need to hire an attorney or possibly just use a closing company to create the contract?  Thank you for reading through and giving your feedback.  One of these days, when I'm on the BP Podcast, I'll have a great story to tell about when I got started!  /sigh