Wrap around/seller carry contract

[Gloria C.]

BACKGROUND of PROPERTY: Thanks in advance for remarks on this topic.  I have a property, 3/4 acre, with house, 3 car garage now outfitted for office space,etc. and rooms over 3-car garage for ???? This property is between Carson City and Reno NV.  Property is commercial zoned, but grandfathered residential. Im being told comps are based on residential (lesser amount), but actually property could be residential living, day care, home based business, etc. which when I bought it, was told commercial is more valuable, due to multiple uses.  Any comments? Is a commercial zoned property more valuable than residential comps?

Now I have an offer but wants me to carry paper (approx. $200K 2-3 yrs.) at 4.4% AND keep the first in place until 2-3 years.  My fear is LOW down payment offer of less than 10%, covid and not paying on first/second....anything else I'm missing?

Thank you one and all!

[Rick Pozos]

I would make sure that the property is NOT going to be used for homestead so that it would be easier to foreclose if you need to. Let him/her dictate one or two of the terms. YOU dictate the others. For owner financing I would do 5 or 6%. Make sure they put at least 10%. Give them a 20yr amortization but with a 3 to 5 year balloon. Maybe put the terms a little higher so that you can get negotiated down so that they will feel like they are wining. If someone comes in with 20k or 30k down, they are not going to stop making payments in a month or two so that they lose that money.