What do you think of this deal? Ideas?

[Patrick M.]

Hi

I now live in Portland Oregon and our family has a new home here. No financial emergency.

OK we have a home in the Chicago area that after having on the market for a bit, we found a solid tenent to lease the property with option to buy at $1150000.

They will have gone through 18 months of on-time payments of 3950 per month plus $500 earnest accrual.

Now they are looking to try to buy the house. The appraisals last week were around 1MM-1,050,000 - comps are hard to come by of course.

Now I should mention that the current buyer actually wants to try to get us to the 1,150,000 that we agreed upon.

OK so he can come up with $120k cash and has access to a 500k loan which would be first position. He is looking for me to carry the second for 4-500k

While I understand the 1st bank would have to approve the deal and do appraisals....any comments on the deal such as...

What interest should I charge for the second to reflect my risk etc....

What creative ways can I claw back toward my sell price goal?

Should I do a 15year amo with a 5yr balloon?

I have a good real estate lawyer and an agent and a mortgage guy handy that will help me as well.... but I wanted to tap the knowledge here for ideas...

Thanks!

Pat