Estate Seller Financing?

[Eric S.]

Hello BP and thank you in advance for any advice.

Theres an estate property I'm looking at, and needs a lot of work which might even negate conventional financing. We are going to go in with a cash offer. Question is, has anyone ever submitted multiple offers using seller financing on an estate? The estate owns this free and clear, but per the agent they have sat on it many years and were not in any hurry to sell. That right there says they just want to cash out and might not want to deal with any creative financing. I am already working on the cash offer, but is there any possibility they would bite on a short term seller finance deal?

Example: Offer one is X price in cash, but I will be usig hard money at 10-12% interest 2% pointswith 25% down and net purchase price and 100% rehab financed. This is a big project so the interest and points  could be significant when added up over a 6+ month rehab (points alone could be 10k).

Second offer seller financed at 7-8% interest only and a short term balloon. Offer could be X price from above PLUS what I save on interest/points from the hard money loan and add that to the initial offer. We would do a smaller downpayment but use the rest of our cash to do the rehab. We refinance when it's rented to conventional financing. The potential upside is to save some money in interest and points but increase the offer price for the seller making it (maybe) more attractive.

Has anyone done something like this? Again they just might want to cash out but its maybe worth a shot.