Currently have a deal: owner finance @6% interest rate for 20 yrs with 20% down. Attorney will draw all the paperwork & close @ the title company. What do you guys get for owner finance deals ? Just curious!
What’s the term of the loan (when does the loan come due?). It it’s fully ammortizing over 20 years, then that’s a great deal. You’ll never get even half that long a term at a bank. 6% is a fine rate – conduit is around 5% to 5.5% and you’re saving a fortune by going seller carry and avoiding the points, appraisal, property condition report, etc.
The seller never mentioned about the Balloon payment, so I assume it’s fully amortized in 20 years, but I will double check. Good point, I did not think about the points and fees that bank charges!! Thanks.
Go for non-recourse as well… Or, consider not even mentioning anything about personal guaranty unless the seller’s attorney requires it.