HELP! I have offer to buy, need to know appropriate rates/terms to charge

[Jack Tucker]

I'm selling a turnkey duplex and the buyer wants to know what kind of terms if I do an owner finance. I own it free and clear and was trying to raise money for a separate 1031 purchase.

PLEASE HELP ME BE COMPETITIVE BUT NOT STUPID!

turn key duplex in Athens GA sale price $89,900.

$1070 rents 12% cap rate. Property pro forma attached.

Out of state investor.

[Will Barnard]

Most private money lenders will want 9%-12% or more. Keep in mind your state usury laws and if the buyer is going to live in the property, I would suggest you avoid such an owner carry to avoid the new DF (Dodd Frank) laws and pitfalls that come with it.

The question really is, what king of return can you get in another passive investment? Then get something equal to or greater than that for this one.