Negotiating Seller Financing -We are the Buyers

[Christopher Sgobbo]

My partners and I are buying a 16-Plex. The current rents are lower than Rentometer suggests. We just purchased a 4-Plex from the sellers with a traditional 30 year loan to establish a relationship with them and that deal went pretty smoothly. The 16-Plex doesnt make a lot of sense or meet our >$100/door (Net) target without doing seller financing. The sellers are 2 older couples in their early 70's and NOT looking to 1031, they simply want out with the least amount of tax exposure. I am trying to negotiate a few options -A 3 year and a 5 year option with the 5 year getting closer to their requested purchase price. I want to make monthly payments to them for the desired term and then get the 20 year Commercial Loan to seal the deal at the end of the predetermined timeline at the predetermined price. How do I structure this and sell them on the least amount of tax exposure? Looking for a way to save a ton of interest for us making this deal work and simultaneously get them the least amount of tax exposure through a NNN Lease.