Seller proposed their financing terms. Am I wrong?

[Michael Greer]

6 plex for sale. 

Asked a property owner if they would consider seller financing. They sent the following terms:

7.5% interest rate, 7 years, 25% up front.

I'm looking to lock in a cheap rate on an income producing property. Looks like he wants his money now.

Aside from the 5% cheaper down payment, I think I'd get better terms at the bank.

Am I missing something?

The only reason I ask is because this seemed so far out there that maybe I'm not where I thought I was.

[Scott Wolf]

@Michael Greer, doing seller financing isn't some magic bullet where every seller will give you 0% interest or something.  It is the same as using a Private Lender, and you usually pay a premium for the. You have come across a savvy seller who would still consider holding paper, but won't give it away for free.

What terms were you expecting from him?  Also, have you offered a counter?