How Does Owner Carry Work ?

[Bruce Harding]

I found a property I am looking at.   $1.5MM

25% Down would be $375K

It was suggested to me to speak with the owners (who I know - they are personal friends) about Owner Carry for $250K.

Does this mean A) The $250K is subtracted from the original purchase price and therefore I would have to come up with 25% of $1.25MM  or..

B) Out of the $375K down the owner would carry $250K and I would have to put $175K down on the deal ?