Concerns from seller on 100% owner finance deal

[Jennifer Jesse]

I have a seller, very interested selling his properties to me when I showed him a lower purchase price, but higher interest rate on his portfolio. It is basically 10 SFH properties, being sold at 1.2 million, interest rate 6%, amor over 30 years.

He liked the monthly amount he would be getting, but was concerned about 100% owner finance, in the event if I was to die or become seriously injured, I couldn't pay the mortgage to him.  He'd have to take back the homes, and legal fee's for everything. I feel he has a valid point, and wondering what my options are.

This is the first owner finance deal I've done, and not sure how to move forward from here. How can I relieve his fears, until i build up more equity in the properties?

[Don Harris]

@Jennifer Jesse

 One of the concerns you raised and possibly both can be partially alleviated with insurance. Purchase a $1m, decreasing term insurance policy for 30 years and make him the lien holder the beneficiary. You "may" be able to purchase disability insurance with income replacement as well (expensive). You may offer the life insurance first, fairly inexpensive if you are insurable.