Seller financing - rates??

[Kirsten Mastro]

Hello BP community.

I am going to be structuring my first seller finance deal.  The buyer doesn't have great credit and another local investor has offered to co-sign.   I am unsure of what interest rate to charge the buyer.   I know it should be higher than a bank would offer and less than what a hard money loan would cost.  I'm thinking of a 2 or 3 yr. balloon. 

Also- I've heard that structuring as a land contract deal would make it easier to take the property back in case the buyer doesn't pay as agreed.

Any advice? 

Thanks for your input.! 

[Ian MacIntyre]

If you wish, send a PM and I can forward you some general suggestions for structuring the note. Best case, especially if you would like to move the note later and cash out, is to set it up for max value up front so that investors would buy it at a premium down the road.