Seller Financing Strategy Suggestions/Feedback

[Conn G.]

Hey BP,

I am looking for an opinion on my potential strategy to get started in REI.

This strategy would include a direct mail campaign where I would target property owners with 100% equity in residential multi-family properties (6+ bedrooms total). I would offer the motivated owner to consider seller-financing to avoid capital gains tax, realtor commission fees, closing costs and gain a passive income with an amortized 5-8% interest on the principal amount. To take account for the concern of not selling and getting all cashback, I would offer contract termination option where the lender(seller) can null the contract with a  6-month notice, however, all principal must be paid back and/or additional 2-5% convenience fee based on the original principal amount (Work in progress).

What do y'all think I am missing here?

My only concern is the legality of the contract and the small market of potential property owners. I need a professional to review this. However, I believe this strategy will work well for a person looking to sell but wants to escape the deadly costs of selling a property. The contract even includes an exit strategy for them if they need the cash soon.

Any feedback would be awesome!