Need help structuring a "Lonnie" type deal - Posted by Ben (NJ)

Posted by Ben (NJ) on February 23, 2000 at 19:59:32:

I am days away from taking title to a property through tax lien foreclosure. I am getting the house for $20,000, it is worth $60,000. To maximize my profit, I am considering a Lonnie type arrangement where I market it to marginal buyers offering flexible owner financing. Ideally, I would like to sell it for $65,000, 10% down, and carry back the rest at 12% with 2 points on the loan. I would like to do 5 years with a balloon at the end. Is this realistic first of all, or am I pushing the “mooch killing” thing too far? What would my yield be? How would I calculate it? Many thanks for any help.