Tips for Land Contract/Seller Financing?

[Guy Johnson]

I was looking over the expired listings today and came across a nice three family. I took a drive by and really like the place. With the real estate market slow right now, I'd like to see what the owners are willing to do versus getting a mortgage. My biggest problems are getting into the mindset of a seller when approached by somebody like me who wants them to be the bank. Which is the best way to approach them? How should I present my idea to them? I would offer them their asking price minus the sale commission, which I believe is reasonable. I would ask for 100% financing at 7.5% interest (I would avoid interst only, but if that was a last resort I would take it), with a three to five year balloon. Being an income property, I see no reason why they would take a lower payment from me while I get cash flow every month except maybe they are not cut out to be landlords. So, any tips, suggestions, or sagelike advice for me? If it doesn't work out on this one, it would be nice to know on the next one. Thanks in advance.