Seller advertised seller financing then changed there mind.

[Chad Zaback]

I'm a little frustrated at this last deal I've been working on. I'm working with an experienced broker that specializes in finding SF houses for investors who buy/fix/sell them. Over lunch one day I shared my vision of buying Multi family and apartment buildings that are seller financed and using private money from some investors I know,  that are looking for a better return on their dollars, to cover the down payment, closing costs and repairs/improvement.

This peaked his interest in expanding his search criteria outside of what he specializes in and within a day he had a sweet triplex within a few miles of my office/shop. So far so good!

I found it hard to get him to offer the package I put together and after some compromise and adjustment we agreed on an offer that we thought would be resonable. 

List price: 219,000

Our offer: 190,000

5% down 9,500

Contract for deed 30 years at 6% 7 year balloon.

Seller owns the building and it has no mortgage or loans.

Sellers realtor wouldn't verbally present the  offer to his seller to start negotiating and when we sent them a fully detailed purchase agreement the reply that came back was.

"The seller no longer wishes to do a contract for deed" "cash out only"

Not sure if the seller really ever even heard the offer and I think his good ole boy Realitor didn't want to spend time on this.

Combined Rents are: $2000

2/1 is 950

2/1 is 600

1/1 is 450

Owner pays all utilities ( no separate meters) Bad veriable for cash flow in the winter here in Minnesota... and the summer too) 

Comments? Feed back? 

[Jean Bolger]

You may be right about the realtor not wanting to deal with it. The commission gets complicated on those deals. Does the entire downpayment go towards commission?or just a part of it?  when does the balance get paid? When the sale is not actually completed for seven years (land contract is not really finished til it's finished, if you know what I mean) then there's a lot of room for things to go wrong.

Besides, as @Steve Smith pointed out,  this is not a promising deal at all. If you bring your potential investors in on something like this I don't think they, or you, are going to end up happy.