Seller financing terms

[Joseph H.]

I am looking at multiple properties for sale at a decent price but wanted to check what you all have to say about the terms for seller financing. My questions are as follow:

Do these terms below sound about right?

Can someone help explain the balloon portion of the loan? I read about it but do not fully understand it yet.

What are some things I should look for in the contracts? Land deed, and or property deeds? Which one is better and why? I want to own all of the property to include the land, and maybe I do not fully understand what I was researching on that topic.

How do I both protect myself and the lender to where we both benefit from the transaction?

I am not as familiar with seller financing as I am with traditional and other types, but looking for any knowledge I can find. Thanks for the help!

This is what my agent found out from the sellers agent:

I just got an answer from the other agent on the owner financed properties.

They are doing a 30 year amortization, 10 year balloon, 7% interest rate and 15% down.

He said it would be different for an individual. I guess that is as opposed to an investor

[Tom S.]

@Joseph H.  Agree, those are pretty standard terms.  The balloon means in 10 years the balance at that time is due in full.  You would typically sell or refinance at that point.

Use a good attorney with experience with these transactions and they would hammer out the details.  Shouldn't be too much, at least in my state, $1,000 - $1200 including title search.

Good luck!