I'm about to sell a property using owner financing.
After the down payment and closing costs are paid, the buyer will owe $158,400. 6% simple interest for 3 years, then a balloon payment for the full amount. No prepayment penalties.
Intent is to bridge the gap whilst the buyer sells their old home and does the necessary repairs to the property to move in. Once they do that, they will refinance. So, basically, I'll make some interest on top of the sales price.
Don't need a discussion of risk, etc. I've got a good handle on that.
So, how do I calculate the value of the note for Net Worth purposes?