Advice on Owner financing offer

[Shawn Holmes]

I currently own a commercial property with a long term tenant. The tenant is wanting to purchase the property with seller finance/owner carry terms instead of finding lending to purchase outright.

What type of interest rate, percent down payment, refundable or non-refundable, terms of loan, balloon term, etc would you recommend?

I was thinking of market rate, but some I talk to say higher rate than market since there's greater risk. I was also thinking a balloon payment in 5 years with 20% non-refundable down payment.

Thoughts, suggestions, recommendations from others who have completed seller financing deals?

Shawn Holmes