My first owner finance deal

[Manuel Oquendo]

This will be my owner finance deal. This property is a old warehouse that’s not really worth listening price However it is zone for apartments. We walked the warehouse with my partners and was able to meet the owner along with the agent. My agent asked about owner financing to the seller‘s agent and he said that there might be a possibility. Fast forward the sellers agent have no idea about sellers financing and rejected our offer at listing price. So I drive to the location and spoke with the owner directly explain to him what I was trying to do and he mentioned to come back and give him a written offer so he can show his attorney. Here’s the details of the offer

 listing price $730,000

10% down payment

4% interest

Two-year term no prepayment penalties

One year of interest paid upfront

Looking for a real estate attorney to help me work out this deal . I’m in California

I spoke with my architect he mentioned to me that I can slap 16 units on that parcel.

New Construction costs $2,992,000

Land $730,000

Holding costs $370,000

All in will be $4,092,00

Estimate Future appraised value $6,500,00 to $7,000,00

I want to thank everyone in advance for the feedback