Seller Financing with Balloon Payment

[Sean Buckley]

Hi all. I have a motivated seller who wants me to increase my offer a little. I suggested I could do so if he is open to seller financing. He's nervous, because he's 70+ years old and trying to retire (hence the sale), so that raises two concerns:

1. He doesn't want to have to deal with a loan default in the future (when he's into his 80s), and then have to sell the property again. 

2. He may not need 30 years of cash flows. 

I'd like to suggest a balloon payment after 5 years, an upfront payment to cover his existing mortgages (assuming they aren't too high) and a 30 year amortization period (so I can still afford the interest). This would align with my plan to do a delayed financing (LTV) within the first 6 months, and give me some buffer.

Have you seen any other ways to approach this? I may have access to private money but that isn't guaranteed right now, so I'd otherwise be limited to traditional financing LTC (and then the cash-out refi fees to get to LTV).

Thank you!

Sean