Writing a great offer

[Mark Beno]

Hello BP nation!  I need help with understanding and submitting a good offer, in general. First of all, I'm in NW Atlanta OTP.  I've read on BP that you should provide different options when making an offer to a homeowner. Assume the lead came via a postcard, and the owner called me. Here are the details on a house I'd like to buy and hold; I'm using round numbers for ease:

Property is 3/2 brick ranch sfr, built in early 1960's, with ARV = $100k

Updates will total $10,000

Applying the 70% of ARV formula gets me to $70k, less $10k in updates = $60k

Owner would like to get $75k - $80k; Rental rates are $1,000/mo on avg.

Option 1: Offer $55k cash

Option 2: Offer $70k owner financing, $10k d.p. to owner at closing, finance balance at 6% interest for 10 yrs, then pay off loan/refi/sell. Results in monthly pmt of $300 (int-only). However, the total paid out to seller is $10k + $36k (over 10 yr period) + $60k (balance at end of term) = $106,000. 

Option 3: Offer $80k, $5k d.p. to owner at closing, balance paid back in 200 months (16.6 yrs). Results in monthly pmt of $375, but house is paid off after term. Total pd to seller over the term is $80k.

I'm trying to differentiate the options, ie, what's better for me vs the owner, etc.. 

Does each option make sense in it's own right?  

Is there enough spread between the 3 options to persuade a seller to take one over the another? 

This is a hypothetical case, remember.  Any and all comments would be appreciated!

[Russell Brazil]

I would find out what the owner wants and why. If they need a large lump sum of cash, and need it to be at a minimum $75k, you might not be able to get the deal done. If they are wiling to do owner financing, maybe that will work.  Really you need to find out their desires, needs, and motivations before you can properly craft an offer.