Pitching Seller Financing

[Natalie Allen]

I came across a FSBO, it's fully rented and totals $2550 in rent roll. Seller is a little old lady. She "just wants an offer". The daughter guessed she'd sell for $140k-$150k. After running the numbers it will generate good cash flow. How can I pitch seller financing to this seller? How do most of you on BP do this successfully? What leading questions can I ask her to make this work in her favor? I'd like to pitch a 20 yr term with 5-6% with an opion to pay off early. BUT, My fear is that if she's in her 80's (and this is just a total guess based on her daughter's description of her) is it better to do something like 3-5 years with a balloon? How would that work?

[Derek Sperzel]

Natalie, I just closed on an off market deal last week, and the situation sounds similar.  I actually wrote the owner two offers, one was all cash, and the other was seller financing. The seller financing offer was $10k higher than the cash one.  I also gave them my Realtor's card so they could call him with any questions about the seller finance option (he did this free for me).  Ultimately, she took the cash offer because she was in poor health.  Maybe write at least one offer based on the terms YOU need, and negotiate from there? Good luck!