Rates are high right now and I think you have a great situation here for you.

The buyer's agent, though excellent, was new and unsure how to handle the situation.

Just keep in mind each persons situation is completely different and small things can make a big difference in rates, fee's points, terms, etc. 

Depending on your exact situation, you could likely get something closer to 7% and make these numbers work a little better.  

The situation you are ultimately trying to avoid is the one where: the borrower defaults, you start foreclosure, the borrower fights the foreclosure and says they didn't understand the loan / could never afford to pay it / you didn't follow the consumer rules, etc, then the judge asks if you followed those rules and you can't show that.... 

Dan,It sounds like you and I have been in similar situations with Safeguard non-performing notes. 

Some of our owners have accidentally thought they were handing a situation "right", and because Chicago is a very tenant friendly city, the laws tend to lean in their favor, and it can cost you a lot if you are simply just not up to date on what is proper protocol (for example, what to say, what not to say, what to have in writing, and what not to put in writing, etc)... can be worth the management fees. 

I am in a similar situation.

Those situations go bad more often than not, costing you money and the friendship.

While institutional lenders would probably need a number years proof of collections before considering the income from the wrap, private lenders, such as myself would look upon the situation more favorably.