Owner Financing Fix & Flip Question

[James Allen]

Hey BP,

Trying to wrap my head around this Owner Financing Fix and flip deal. I've never looked into to doing owner financing with a flip before. I have a few questions that maybe you guys can help me out with. 

1. What are typical lengths of deals done with owner financing with intent to flip. (ex. 12 month, 18 month, 3 year w/ balloon payment, etc.)  ??

2. Typically, If I were to pull this flip off in 6 months with a 18 month loan w/ balloon payment, will I be able to pay off the remainder of the loan after 6 months penalty free or do I have to make those payments for the whole 18 months no matter what? 

3. Is it typical to let the seller know your plans are to flip the property? 

4. In this deal, we're both using the same RE Agent. Does the agent draft the paperwork or would an attorney be more appropriate in this case? 

5. Is it important to make sure they have 100% equity to avoid wrap around mortgage complications such as potential due on sales clause, etc.? 

Thanks in advance!