Seller Financing on a Flip

[Derek T.]

I have an off-market deal I am working. Normally I figure my cash number and offer it to the owner and we work from there. This owner actually mentioned that he would be willing to carry it longer for a higher price. Now I have a few rentals but I normally just flip and would like to keep it that way. I use HML so I want to see if I can structure something with owner financing to save on those costs. Here are the numbers....

My Cash Offer- $120k

He Wants- $132k

ARV- $240-250k

Repairs- $45k

So the house is already a decent deal but I would like to maximize the financing on this one if I can.  I just have never set up an owner financing flip so how would you go about structuring this?  Something like 5% interest only with a balloon in 12 months?  He says he is not desperate for the money now and would like to squeeze out a bit more.  This would probably save me about $15-20k in hml costs so I would be willing to give a little more for the right structure.