Advice on asking for Seller Finance

[T.J. Isaacs]

MIL's neighbor called and said they are going to sell their house. Renter is moving out end of September. MIL said before she goes to market she knows someone that could be possibly interested in the property. An assumption at this point, but the house should be paid off. They were getting $950/mo and just raised to $1100/mo. House will need a little work, but should value around $175-$180k with updates. I am not afraid to ask about them doing seller financing, just need assistance on how that looks. 

For example purposes:

Offer $150,000, how much would you offer as a down payment? 

How long would you ask for seller financing? If I could fix and BRRRR, would be ideal.

What to offer in a finance rate? 

What else am I missing? 

[Marc Winter]

First, I'm going to guess that MIL is mother in law?  I'd have her set up a meeting with the seller.  Have coffee at the kitchen table, and explain the benefits for them selling to you directly.  Let them know you are an investor, and the way you prefer to buy is with the seller being the bank.

I wouldn't even mention interest at first.  They may look for straight pay off--stranger things have happened.  Go for the stars and maybe hit the moon.

Also, don't run the condition down, but let them know you'll have about $XXX in repair costs.  You can also mention their possible tax benefits in selling to you with them holding the note.

One last comment--let them know if you go to contract, the property will close on time--the best time for them.  

Oops--one more 'last' point--if there is a small mortgage left, let that be you down payment.  Otherwise, don't mention down payment--if they hold the note, you'll be improving the property with your rehab.

Hope you get the drift.  Good luck.