How Dose This Sound?

ok I decided to owner finance to my buyer who did not qualify for the loan here is my terms and tell me what you think BTW they asked for for 12-18 month then they will get their own financing.

20% down and I will finance 100k at 9.6% which is 800$ interest only nothing toward principle/month for 12-18 month and the balloon payment of 100K at the end if they don't pay off I will just act like the bank (take it back or they pay me another 25-30% more of the price and we work other monthly terms then. The buyers will pay for property insurance etc, and I will make sure they do because I will be the bank and I need to protect the property from unexpected damage

Why don't you have them pay you taxes & insurance along with interest and you then make the insurance and tax payments to insure that they are made?

More importantly, why did they not qualify with 20% down? That sounds scary to me.

[ Edited by rehab2day on Date 05/04/2008 ]

your right maybe I should pay the insurance and add it to the monthly payment,, they did not qualify with 20% down because its a new business not existing that's what they said and plus the business is a spiritual/Dance church so they would not pay property taxes. I don't know how would that work if I am the bank but unless they are the owner on the city records there will be no property taxes assessed. Churches don't pay taxes.

Wow, is this in Ashville? This sounds like it is my 2nd cousin; right up her alley.... smile

Interesting: are you sure they qualify for church status. Are taxes much in that area, anyway?

Insurance might be a big deal w/that type of use, tho.

So, they have 20% to put in and are willing to pay 9.6%. Sounds positive. Did you run credit?