Structuring Owner Financed Deals

[Jimmy H.]

I am in the market for long term buy and hold rental properties. I have the cash to acquire a couple of units but would rather use that cash as a down payment in an owner financing scenario. I do not believe that I am in a position to get bank loans very easily, which makes owner financing more attractive.

I have come across some sellers who are open to the idea of owner financing, depending on the terms. I need help in crafting the terms of the note that will be both attractive to the seller and beneficial to me.

My thought has been to offer around 20%-25% down, 6% fixed interest, and a 15-20 year amortization. But, I wanted to post here first and get some suggestions so that the owner financed offers I make are as clean, concise, and coercive as possible.

Thoughts? Suggestions?