Are the Sellers terms reasonable?

[Bella Batal]

BP fam, 

Can you help me understand if this deal makes sense?

The Seller is happy to do creative finance, but is requesting a big amount of cash upfront to go towards loans. 

All buyers that have responded with interest have said they can't bring in that kind of cash, but are happy to sub to. 

The buyer is not too convinced, as they are moving out of state, and don't want their name tied to any debt. 

The cash upfront comprises of the debt the seller owes to the bank ($690k) + debt owed to PML for renovations ($410k) = $1.1 million 

With that said, they're willing to do Seller Carry back with a 5 year balloon. 

Here are the details:

A 3 bd, 4 ba, 3,877 sqft renovated property. 

Bought in 2021, at an interest rate of 3.25%.

Total loans: (Mortgage < $690k + renovation from PML @ $410k) = $1,100,000

These Sellers payment terms are:

• Sale Price; $1,800,000
• 1st lien mortgage note $1,100,000
• $360,000 in closing funds from buyer
• 2nd lien Seller Carry Note $340,000 maximum, @ 2% with monthly payments based on 30-year amortization with a balloon after 5 years.
• The property is off market, and they plan to list it by end of the month. But in their market, if a property is over $1 million and does not sell before halloween, they have to wait till after Super bowl. So my efforts is to help them sell now through creative financing but have not been able to either: 
• - Find a buyer that can bring in a great amount of cash upfront 
• OR
• - get the Seller to agree to accept to divide his loans; the reno loans paid off, but the mortgage to continue to be paid for the length of it's term. 
• How can I make this deal work? Am I targeting the wrong pool of buyers? 
• How can I comfort the Seller's concern if the bank debt is delayed/defaulted by the buyer, what are the risks/consequences? 
• Thank you BP fam