need help structuring a deal

i am selling my home. i have a buyer who would like to do a lease option.

i owe $191,000 on an interest only, PITI = $1,438.

selling for $207,000

buyer has $20,000 to put down… possibly a bit more.

how do i structure this so we’re both covered. i dont’ want to put myself in a bad position once he is able to obtain traditional financing.

i’m thinking i take what i have coming equity wise ($16,000) and put the other $4,000 to knock my principle down to the $187,000 which is what the buyer will now owe me. or are there other fees that i should collect up front?

i want to set up a bank account that the buyer can deposit his monthly payments into and then have my payment debited out. that way he knows i’m paying my end and he’s not getting screwed. is this a good way to go about it?

i’ve never done a deal like this so i need some advice. thank you in advance.

How long is the lease period and are there any extension ? Does his payment cover your, are you crediting anything monthly to the down payment, what are his chances of actually getting financing ? I usually send lease op people to my loan broker first to see if they can actually get financing anytime in the future or even now. If yes I then set up a note servicing account through Noteworld Servicing. They pay my morgage w/his money and send me the difference. Your tenant has an access pin # and so do you, that way you both can see if the notes obligations are being paid. In other words he doesn,t have to track you down to see that you are paying your mortgage w/his money. Everybody Wins ! Hope this helps,