Advice on how to structure this deal.

[Matthew Rogers]

Hi Everyone!

I've found a small apartment building (14 units) that i'm considering making an offer on. I'm trying to be very creative in how I structure the deal so it is very appealing to the seller.

I can't afford a cash purchase and don't want to do a private loan as I want to buy and hold this property. I've talked to the agent about the owner carrying but she says at this time he's not interested. Even thought she says he's not interested it sounds like if they right deal was presented he might bite.

Here's what i'm thinking my offer is going to be;

Purchase price 400k

Down payment 100k

36/Month Carry @ 10% on the 300k Principle

Estimated Monthly Payment $9,680

Property Cash Flows about $6,700

Monthly out of pocket about $3,000

The 400k would be a full price offer which realistically I think he'd sell for 370k all cash. So I figure with a 36/month term, paying the extra 30k and a 10% rate it's a great deal for him if he doesn't need the money.

Any suggestions? I've thought about offing a 5/year carry and an 8% rate first and if he says no then go in for the kill with what I've proposed.