Owner Financing? What do I need to know?

[Laura Minard]

Hey Bigger Pockets!  

We have an opportunity to buy a property so that I can open my own homeschool learning community in my new town in Maryville, TN. The property is 3.5 acres, has two manufactured homes on it that are rented, and a 3500 sf commercial building which we will use for our homeschool learning center. The owner said he is open to financing it for us as there are no comps and no actual home on the property.  I wrote up an offer that makes sense to us. It is under asking but the owner financing is .25% over prime at 5% for 15 years.  We included a 5% of principal pre-payment penalty clause.  I will be presenting the offer this week, I met the owner and know a lot about him and why he is selling.  Would love any wisdom around owner financing!