Deferred Interest Rate Offer

[Eric Herman]

Hey all, 

So I am relatively new to real estate investing. Currently I am raising money and I was told/read a solid strategy raise money was to offer a high interest rate. But because I will be renovating and the building I am buying with be in turmoil I am offering a deferred interest rate with a balloon payment contingent upon closing. So..just want to make sure I have the math for this worked out before I talk hard numbers with some PMLs. 

I am offering a 10% annual interest rate, paying a 2% deferred interest rate for 18 months, with the option to extend it another 6 months if necessary. At the end of those 18 months, I will be paying them the 2% annually, plus an additional 17% in a balloon payment?

On 2 years I would be paying the 2% annually and an additional 24% in a balloon payment?

Hopefully my contract will be accepted tomorrow for the property, there is a good chance of it, and its our first one so pretty excited and nervous. 

Thanks for the help!

Eric Herman