Structuring seller finance deal as Seller

[Jill McCann]

I need help understanding how to structure a seller finance deal. We received an offer for family property and now that it's time to close they buyers are requesting we seller finance. The property is owned by brother and sister and there is no mortgage. Can someone help me with terms? 

The property has 4 homes, acreage and farmland. The new buyers want to farm and use most of the homes. We need enough money for one of the owners to purchase another home or negotiate he stay living there. But the other owner also needs money from the exchange. Both would appreciate the monthly income over a lump sum as well, and it will help with taxes as the property is inherited and has increased in value. 

The buyer has proposed 13% downpayment, 4% interest, interest only payments for 3 years and then interest only plus $1000 for another three years and then loan paid in full. These terms do no seem favorable to me. Can someone help me structure and offer advice for terms and anything else to consider and include? 

Thank you!

[Chris Seveney]

@Jill McCann

If they cannot afford it conventional terms then they most likely cannot afford it with your terms and it can be more of a headache down the road. I would not take less than 25% down and 9.99% interest and have a five year balloon on the loan