Posted by Michael Steele on May 01, 2007 at 08:46:29:
Here is the tricky part in your situation. If you are providing partial seller financing (assuming you leave the remaining for them to get funded by conentional lending standards) the 1st lien lender has a say so in how the seller 2nd is structured and can dictate how much the payment and interest rates are created. This will directly affect the customer’s debt ratio.
I say all this to state that you have a goal of financing a pool for yourself and require your payment to be covered and hopefully your seller financing note will cover such. You may walk into the deal assuming you have full control when your not in control 100%. Most lenders in structuring seller financing notes are flexable to a certain extent.
All of this you will have to keep in mind when putting your deal together.
Hope all this helps