Monthly note income is not random. It is engineered by term design before closing, which is why sellers who model scenarios early usually get better outcomes.
The four levers that drive your payment
Financed balance, interest rate, amortization length, and payoff schedule determine payment amount and lifetime interest.
Changing even one lever can materially shift both cash flow and total proceeds, so terms should be modeled as a system.
Balloon is optional, strategy is required
A balloon can create a planned liquidity event in a shorter window, while no-balloon terms prioritize longer payment duration.
The best structure depends on your timeline: income focus, planned reinvestment, or a known future cash need.
A simple planning workflow
Most sellers do best by comparing three versions: conservative, target, and stretch. That makes tradeoffs obvious before negotiation.
After choosing a preferred range, terms are finalized around buyer qualification and document strength to protect deal durability.