I was going to bring up that the seller financing doesn’t matter if you plan to get a construction loan as the seller financing will have to be paid off. 

The owner is open to seller finance for us.

Before finalizing a decision to sell, I thought I’d get some thoughts from the BP forumThe only obvious factor I know to try to head off a problem is to carefully screen applicants.

Most work like this: Rates: 9% to 13% (Most Deals are 11-12%)Terms: up to 36 Months (Most Deals are 6-12 months)Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $250,000 $2,500 minimum fee)Max Loan: 65%-70% of After Repair Value(ARV)100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 Weeks)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

How did you finance this deal?

Reached out to owner of neighboring property How did you finance this deal?

I can tell you that being around new construction the past 12 years, I would say 1/4 of the projects we have been apart from residential to commercial will experience delays to MFGs out of stock, HOAs changing their specs, Cities changing their specs, Weather 2-3Xs budgeted rain delays, Subcontractor injuries and death.....Then Hurricane Harvey in Houston are.....WOAH  major delays...I have seen it.We are happy to be providing funding to DCGI's BTR community members, many have gotten their applications in already and look forward to helping the rest of yall accomplish your real estate goals. 

When you finance through national lenders, in your experience, is a balloon a common requirement for commercial loans of this nature or is it possible to get a fixed rate for 30 years?  

Hard to say one way or another without knowing your personal finances, goals etc., but it seems like a good deal. 

Our lender has informed us that we need 12 months of rental history to use the actual rent for financing purposes, or we must rely on the appraiser's fair market short term rental value.