Fair interest rate for owner finance

[Moshe H.]

Hi everyone, I am trying to develop a bid on a commercial mixed use property that I would like owner financing on. I was playing around with the numbers but I'm wondering what the lowest interest rate is that I can offer and still feel like I'm being fair to the seller. I was thinking of 7% but I kind of pulled that out of a hat and I don't want to overpay. The seller is motivated and is an owner/operator not a real estate investor so I don't think they'll push too hard on the rate.

Any ideas? :-)