BRRRR: Refinancing Seller Finance Balloon Note

[Darian Richardson]

My Fellow BPERs and BRRRR Connoisseurs,

I need your advice and expertise.

Currently, I am looking into an off-market deal in Lawrenceville, Ga. The property is in need of repair ( roughly $22k in reno), with an ARV of $110K, I am looking to purchase at $70,000. One of the options I am looking to propose to the seller would be seller financing. To make this advantageous to the seller but also equitable on my end, I am thinking of a 2/1 balloon note. The goal would be to refinance after reno, well within the maturity date to payout the seller, and transition to a traditional loan with a lower interest rate.

This would be my first time doing the BRRRR method but also the seller finance option. When it comes to the balloon payment, I have heard more negative than positive about it, so I am a bit conscious about it.

Has anyone ever been in this situation, or has any experience with either seller financing or refinancing a balloon note?