LOI vs Contract

[Ryan Doyle]

Here is the setup...I have my eye on 2 parks in the same general area. I think both are over valued based on their asking price...but what park isn't?

I would like to make 3 offers as LOIs, to soften the blow of the much lower price I have to offer.

1. Offer for cash, very low. (I get a new loan.)
2. Offer to assume existing loan, low down payment & owner financing of the rest at 8% rate...a little higher than offer 1.
3. Offer to assume existing loan, slightly higher down payment & owner financing of the rest at 5% rate...a little higher than offer 2.

Or should I just send a contract with their current asking price until I get some solid numbers to work with and then negotiate the price and terms after we are under contract?

What sort of rates are people getting/using for owner financing...I'm not even sure what to ask for.

This will be my first deal...