My Tenant wants to purchase my paid off property from me

[Emmanuel Govea]

I live in California and I own a property in Texas that is currently being rented out. The tenant wants to purchase the property from me and understands that in doing a Private Loan the interest may be higher than getting a loan the traditional way. I am looking for advice on how to proceed with this. 

I do have mortgage background, however I have never dealt with Private Lending so am unfamiliar with who will do the doc drawing and what is required by title. Any help would be greatly appreciated.

[Thomas S.]

As far as the mortgage contract is concerned you have your lawyer draft it and the buyer pays your legal fees along with all there other closing costs.

You can hold the mortgage long term or have a balloon where he will then get his own financing.

Interest rate will be much higher, reasonable to assume 8% - 10%  or higher, dependant on the size of his DP as well as his credit score etc. Probably a slim chance he will even qualify otherwise he would be applying at a bank. He will likely be high risk.

Keep in mind you may end up foreclosing.