Help determining good terms for 2nd position seller

[Paul Burbank]

Hi all. I am currently working on an off market deal to sell a property of mine. The buyer is asking me to hold a second position note on the purchase for $35,000 @5.5% with a 25 year term and a 6 year balloon. I am comfortable holding the note and have done a bunch of research on the topic as well as vetting the buyer.

My hang up is this: I have NO IDEA what a good counter offer from me should be on the terms of this note IE; rate, length of balloon, total term length, interest only payments or P&I etc. as well as anything else I might be missing.

I have searched BP quite a bit and not found anything that I feel applies closely enough to my specific situation. 

Any help would be GREATLY appreciated as the buyer currently awaits my counter offer and I've already been sitting on it a few days.

[Brandon Sturgill]

@Paul Burbank How is the deal structured?...a conventional lender won't originate a conforming loan with a seller carried portion...so if he's using bank money you may need to re-think it. If the buyer is using cash or some other unique funding source, there may be an opportunity...

Is there a lien balance now? If so, what is it and how is it structured? If not, why would you be in second position? Just need to know the full terms of the deal before offering a more informed response.