Help Constructing a Seller Financing Deal

[Jose Jimenez]

Hi BP Community,

I am trying to figure out how to put together a proposal for a seller financed deal. I am the buyer and my uncle is the seller. I, as the buyer would be proposing the deal to him. I would like to draft something to give him, showing him the numbers. Yes I can just give him an amortization schedule but I wanted to hear about how others have structured their deals. I am new to this so please bear with me. If any of you could point me to resources on how a deal like this could be structured (balloon payments, terms, etc.), I'd greatly appreciate it. I have read some forum posts on the topic and read the chapter on seller financing in the BP book investing with no or low money down. I have an idea what I would offer but sometimes it's what you don't know that changes how you look at a problem and tackle it. I think I would gain value by seeing actual examples and interacting with the community on this.

Background:

1. Property is located in bronx county, owned free and clear. No back taxes. 2 units.

2. Because I know some of the particulars my uncle is cash flowing but not optimally. Actually, one large cap expenditure in a year would wipe out his years profit.

4. Based on my preliminary numbers, an owner financing deal would give him more cash flow than he currently gets now.

5. I need to understand both sides of this transaction as I don't want to negatively impact my uncle in any way.

Needs as I see them:

My Uncle's - A steady flow of retirement income.

My needs - Equity going into the position and sufficient cash flow operate and improve the property. To make sure I don't miss something and hurt my uncle's financial standing. 

If I need to expand on something please let me know and I will do so. Thanks in advance!

Jose