Creative financing a SFR

[J D.]

This doesn’t relate to an investment per-se, but I hoped I could get some good advice from the BP community on a question I have.

I'm a luxury real estate agent with a SFR listing for $9,000,000. We got an offer of $5,500,000 asking the seller to carry $3,500,000 for 9 months. (With 8% interest paid in advance). But the buyer wanted a credit of $1,000,000. Presumably to do work on the house. I'm thinking he wants the money to rehab and flip the house for $10M+ so he can pay back the $3,500,000 within the 9 months and clear $1M profit. Will a bank approve something like that? What if he defaults on the $3,500,000? Of course the bank would be in first position.

What are your thoughts?