Vendor Take Back Interest?

[Genevieve Vienneau]

I came across some properties that I'm interested in purchasing. The seller is offering vendor take back mortgage for 20%. I'm trying to run my numbers. What kind of interest rate and terms can I expect on that 20%?  Does it vary greatly or is there a standard? Is this something that I would include in my offer? I have no ides what's reasonable.  I guess a good start would be to check what works with my numbers but I would like to get an idea. Thanks! 

[Genevieve Vienneau]

Quote from @Alex Gunnerson:

Quote from @Genevieve Vienneau:

I have a follow up question...

When using VTB do you still aim for cash flow? Or focus on paying off that VTB and getting the cash flow once that's cleared in the long term?

You’re welcome! That’s going to depend on you and your goals. Personally, I’m in cashflow accrual mode. I want everything I buy the cashflow on day one if possible. Eventually that may change, but the extra cash flow now would give me freedom to invest with different strategies down the road. 

Whatever you decide, good luck! Feel free to message me if you have any questions.

Thank you so much! With this property I'm thinking more long term and don't mind waiting for it to cash flow. Especially since I wouldn't be using any of my own money for the down payment. I'll start my offer with a number that allows for cash flow and will go from there.  I appreciate you taking the time! I might take you up on your offer since I'm sure more questions will come up.