My situation...need advice! Owner Finance?

[Josh Christians]

Alrighty, here is our situation...and I need advise!
I have searched the forums and read MANY threads.

First, we OWN free and clear a home valued at 80k.
Rented it for two years, but now we want to sell the home. We are planning on moving 2.5 hours away.
We have a couple that are interested in the home...and seem to be great candidates to owner finance to.
They have a successful business, had received bad tax advise...so, had some business troubles...and now don't have the best credit and making payments to the IRS. Would most likely not be able to get a loan from the bank.
They have a perfect track record of paying rent on time and have plenty of income to pay down payment and monthly payment (whatever that may be??)
So, here are a few questions being NEW to this owner financing stuff:
1.) I was offering the home for 74K...with owner financing do you typically sell for a little more??...my thought 80K?
2.) Is it just whatever we agree upon as far as term (15 or 30 yr. etc)?
3.) What is a fair amount to ask for the down payment and interest rate?...and seems like you want enough down for security, but also not too much...so you can get more interest $$ out of the deal, right?

Appreciate any feedback!

[John McNamara]

Don't know the specific laws in your state but I would Land Contract the house to them over a 10+ year term. It puts you in the "power position" a little more because you still hold title and you can typically get them out faster if need be. Maybe a balloon payment at the end of the term. It basically gives them 10 years to get their financing in order. You can typically ask for a higher market rate (I mean value of home) because they're paying you for the benefit of not having to get traditional financing right now. Like Jeff said, get a nice chunk of cash down, at least 10%+ minimum to make them have some skin in the game :lol: