Structure an owner finance deal for an 8 unit complex

[Jason Skinner]

I am meeting with the owner of an 8 unit off market complex tomorrow. The owner is an older gentleman and has managed this property for years. I want to propose an owner finance deal but I need ideas for a win/win structure. The complex consists of 4 buildings with 2 units each, current rent is $650/unit for a total of $5200 in rents. The owner wants $600k for all units plus the land. 

My idea is to offer the $600k, I pay current owner $2500/month for 5 years and buy out the rest at the 5 year mark. 

Any structure ideas that would make more sense for me and the seller?

[Gregory Schwartz]

Dont pitch owner financing. It will sound like a used car salesman pitching a "great deal". 

Ask him about his experiences with the complex. Did he enjoy the monthly cashflow? Was it painful when water heaters had to be replaced or tenants skipped in the middle of the night? Talk about how great cash flow would be if it weren't for those pesky tenants. Then ask him if he would enjoy cashflow every month without the headaches. 

Highlight how owner financing is a great retirement option, then ask him how much he would want per month. 

Make sure he does 90% of the talking. Get to understand what his goals are then together see if you can structure the deal to fit his goals and creates opportunity for you as well. But start with his goals not yours. 

Good luck