Hi, I need help evaluating two options on a commercial property. The potential buyer is having issues getting a conventional mortgage.
Agreed upon purchase price when contract was signed (before finding out they didn’t get the loan): $250,000 They have already put in $10,000 earnest money in escrow.
They have come back and asked for owner financing. The real estate agent made a few suggestions. Which of these suggestions is better for us, and which is better for the buyer… and why?
The term for both options is 2 years.
$700/month applies to paying down purchase price
$1000/month applies to paying down purchase price
The buyer is planning on spending anywhere from $6,000-$8,000 on paint, carpet, etc. upon moving in.
Thank you in advance! I am trying to evaluate this for my boss. He wants to know which option is better, “by the numbers”. I think he means time value of money etc. Unfortunately, I didn’t take finance courses.