Wholesaling and Owner Financing

[Melissa Hoffman]

Hello, I am a wholesaler and I am hoping to find a buyer for a seller that would be happy to owner finance and I have some questions. The potential buyers are all interested in flipping the property, not keeping it long term. Would the seller and the buyer negotiate these terms AFTER the seller and I put the house under contract? Or do the seller and I negotiate those terms and THEN I present those terms (along with sale price) to the potential buyers? Also, is the interest (say 5%) for the full purchase price and paid each month? Or is the 5%  divided for an entire year? Are the down payment and mortgage payments then subtracted out from the final price once the house is sold? Would this change anything on my end, payment wise?  Sorry...this is a new concept to me. Here's an example of what I'm thinking it would mean for the seller and buyer...please correct me if I'm misunderstanding:

Purchase price: $500,000

Down Payment: $10,000

Monthly Payments: $2,000

Interest (5%): $2,083 

Amount paid (less down payment) in 3 months: $12,249

Balance due, once house closes: $484,000

Is this correct???