Need help with first VTB badley

[Golf1234]

Hey guys I could really use some help.

I am in the middle of buying my first building and need some help with how to set up VTB.
Here are the details.
Building cost $1,000,000
Down payment $150,000
VTB $850,000
Vendor will only take back mortgage for 10 years.
What I am looking for is the best way to set this up so I can get the most principle payed off so financing will not be a issue in 10 .

Here are some details about the vendor.
The build was purchased 15 years ago for about $600,000
I believe they are mortgage free now.
Vendor is 65 and very I'll and wants to travel the world and needs an income.

Any help would be great.

 

[Thomas Beyer]

Add this to contract, where it says financing as the vendor becomes the bank.



Vendor to carry a mortgage in first position for $850,000 at ___ % with a __ year amortization, payable monthly at ______ for 10 years. Purchaser has the right to prepay this mortgage at any time, without bonus or penalty. For greater clarity, principal due in 10 years is _________.



[The higher the amortization the higher the monthly payment and the faster the paydown, roughly 22% on a 25 year amortized mortgage, roughly 30% on a 20 year amortized mortgage, depending on the interest rate used. Consult a mortgage calculator for exact details]

 

[ChrisDavies]

Those could be great terms. You should get a commercial agent or lawyer to help you out. I can suggest some people if you can give me a call.