How to Best Structure Owner Financing

[Josh Bauerle]

Hey Guys,

I’m in the process of purchasing 11 different properties from a single seller and trying to figure out the best way to structure the sale. 

The deal consists of five SFR, three condos and three duplexes all for a total of $375k (rural Ohio). They should easily appraise for $460-$475k.

I’m putting $30k down and seller is financing remaining $345k at 5 percent over 10 years. He has escalating interest rates if at least six properties aren’t refinanced after two years and all of them aren’t after five years. We are all good on those terms no issues there. 

What we are trying to figure out is the best way to structure the owner financing. He wants to protect himself and not have to foreclose on 11 different properties if I stop paying. So he prefers a land contract. 

My concern is what will be the easiest structure to refinance out of. 

So I guess the question is does structuring this as a land contract make refinancing these properties out more difficult?  Could I still do a 75 percent cash out the same as if I had actually purchased the properties?  Any other structure you recommend to fit both of our needs?