Owner Finance - What proposal would you make?

[Drew Graham]

Hello BP! I'm looking for some creative seller finance proposals to present to an owner who said he was willing to review the offer if it included a large non-refundable deposit.

The situation...

The property: a 3 bed 2 bath advertised as a total renovation or tear down. It's been on the market for 110 days. We've done a walk through and we plan to renovate it. It's located in a great area where homes sell for a high price very quickly.

Current price: $560K. We would be happy around $490K. His agent said he's been offered around $500K by developers but didn't bite. Based on the condition, he can't rent it and has no money flowing in from it.  

Renovation costs: estimated to be around $150K

ARV: around $800K

The couple I'm working with recently completed a reno with a hard money loan. They were successful and turned a profit but it was obviously expensive and we're looking for cheaper financing options. We reached out to the selling agent and asked about seller financing and he said to put together a creative proposal that included a large non-refundable deposit and he would review it.  

I've read the book on investing with little to no money down but wanted to see what kind of feedback I could get from the forum. All feedback is appreciated!