**Need Advice** ASAP-- Seller Financing for Motivated Seller!

[Blake Woodham]

BP Nation, 

Got a lead off a bandit sign, and it seems like an opportunity. This is my first real "flip". 

Details- 3/2 in very good condition. They had some mold issues, and water damage they just had fixed, and they are tired of working on the house. Just looking to get rid of it. 

So, they have a $94K mortgage on the property. ARV is $145K conservatively. From my initial inspection it needs about 12K-ish in work. Carpet, some sheet rock, cabinets in kitchen, and probably some touch-up paint. Bathrooms could use updating as well, but not necessary.

Now, I gave them the 2-option approach.  A Low-ball cash offer, or seller financing for the payoff value. Of course they want the payoff value. 

For the Seller financing I was thinking $94K with 8% interest and a 1 year balloon. 

1, How do you word your contract for seller financing deals? 

2. Do you pay the mortgage company directly or the seller each month?

3. What happens to the equity that is built each month? 

4. Do they keep their insurance or would I have to get that while I am listing it on the market?

4. Anything else I am missing?

If anybody is bored and wants to help a rookie through a deal, give me a shout. I could definitely use it..lol.