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Updated almost 5 years ago on . Most recent reply
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Seller financing- Convincing a Seller because they want cash flow
First time poster here, I recently came across a multi-use property with an apartment upstairs and streetfront office downstairs. My agent went to approach the seller's agent about a potential purchase only to find out the property had just been taken off the market. The reason given was that owner liked the cash flow the property was producing. This was a bit unexpected as the property was marketed for more than 5 months. My guess is that either 1) some of the offices were vacant and now were rented which dramatically increased the cash flow or 2) the property still cash flowed and given the virus situation, certainty of cash flow (even if small) was better than a one time payout with no other investment prospects readily available.
I'm in a position to put 30% down so I shouldn't have any trouble financing the property, but if the owner is no longer looking for a one time payout, my question is there a way to 1) convince the owner to issue seller financing (or some other means) to get them the cash flow they perceive as valuable and 2) make sure I don't overpay for that financing as rates are so low right now?
Also, what questions should I get my agent to ask the owner to get more info to provide more clarity to the situation if the seller's agent is no longer motivated to reply? I'm not local otherwise I would investigate myself.
Any advice is much appreciated.