What are your thoughts on this private installment note in 2016?

[Charles Lecky]

A private installment note between two private parties (no banks).  Note is for a commercial industrial building in OC, California.

Here are the current terms (this was originated in November 2016). Monthly payment with interest is said to be $6,525. 

Installment note terms:

Principal sum today: $1.05m

Interest rate: 5.1% for the life of the loan

Amortization: 25 years (so about 22 years left)

Prepayment penalty year 1 (this year) - 5%

Prepayment penalty year 2 - 4%

Prepayment penalty year 3 - 3%

Prepayment penalty year 4-8- 1%

One and only balloon of $26K due December 1, 2019.

Simple due on sale clause. A late charge of 6% fee after 10 days. No annual requirements on audits or reviews of financials (save money from hiring CPA consultants). There were no origination or appraisal fees. No other fees. Trustee/Trustors will allow assumption of the note to a new party if all terms remain the same. No transfer fee.

What are your thoughts on this existing note? Would a new buyer consider the loan assumption versus a traditional bank?  The current building is for sale at $1.7m, so a 62% LTV required unless there is a second mortgage.