In need of a contract to make offer with seller financing

[Jason Mcdaniel]

Hello all!  I'm in serious need of advice and also a contract!

I'm currently in the process of looking at a multifamily property that is off the market and I would really love to buy it with seller financing.  My biggest issue so far is no being able to explain seller financing clearly enough to the seller because it is my first time in this situation.  My previous, first, and only other investment property so far was done with seller financing but the seller was advertising it as such and he had tons of experience with doing seller financing deals. 

So, I want to make an offer to this gentleman on his property for $300,000 with 10% down on a 30 year mortgage plan with a 5 year balloon payment.  

A:  In general I know what this means and I'm trying to explain it the best I can but he keeps getting confused about why he should finance it to me and what guarantees will he have if "something happens".  He's 84 and just doesn't want to deal with it any more but also in no rush to sell it.  I believe if I could explain it properly he would definitely go for it.  I already told him that with this method he will receive the most money possible for his property and why but he doesn't get it.  I really need a third party that he trusts to come in and simply explain to him that I'm right and it's win-win.   

Should I maybe offer a 3 year balloon payment?  I'm very confident I could make it happen with a cash out refinance.  I'd actually try to do a cash out refinance within 2 years.

B:  I have no idea where to get a contract so if anyone could please point me in the right direction I'd really appreciate it.  I think maybe the best route is to just give him a contract (if I can find/create one) with the offer and details and tell him to read over it and maybe take it to a lawyer or title company to read over it with him and then get back with me if he's interested or has any questions??

Any advice would be so greatly appreciated as I'm super excited about this property and I really want to make it happen! :)

[Shenice B.]

Jason,

It seems that many people are resistant to finance a property because they don't understand the process and how it benefits them. I recommend showing how much he would make (in interest) over the 5 year period. I think a balloon payment is a good option if he likes the idea of getting monthly payments until then. I have a simple balloon payment sheet that can send to you so you can show the owner the number breakdown. It might be helpful.