Holding a construction loan

[Kelly McClellan]

Hello. 

First time poster here. I have listened to a number of podcasts, however. 

My wife and I have been investing in real estate for over 20 years. We are getting to a point that we are considering disposing of a little bit of property here and there. I currently have a three unit building for sale in the Columbus Ohio area. More specifically, it is in an historic area referred to as German Village. 

 We have owned the building for around 15 years and the area has certainly appreciated over that period.   Two of the three units are rented and in rentable condition. However, one of the units is in need of extensive remodeling  as I started demolition and renovation on it years ago. As life goes, my intentions of completing the project got waylaid by other priorities. That unit has been sitting vacant and not generating rent for a number of years now. 

We have several parties interested in purchasing but it is clear this project will require either an all cash offer or the ability to secure a construction loan.  We do have multiple offers on the table as I write this. 

 With the concern of the extensive remodeling required, one other possibility that we are able to offer is the ability to carry the financing as we own the property out-right. However, I have no experience with this as we have never done it before. One of my key concerns is how to best structure such an arrangement while keeping in mind that I need to assure myself that the construction process is moving in the proper direction in order to secure the investment. 

  I would be interested in any feedback from those who may have experience with such arrangements. I figured this foreign might be the place to find those who have structured similar types of deals. 

Thank you in advance,

Kelly