How should/could I ask my note holder for a discount?

[Will Gaston]

All:

I have 2 seller financed properties that I am looking to refinance with my portfolio lender to take some cash out. Both of these properties were purchased in early 2016 from two different owners. 

Note #1 is a 20 year AM that started at ~103k and has been paid down to ~98k and has a current LTV of ~58%

Note #2 is a 15 year AM that started at ~170k and has been paid down to ~160k and has a current LTV of ~64%

The interest rates on both of these are 4.625%. I could be wrong about this but my intuition is that most note holders will take a discount to be paid off early. However, both of these owners are retired and in their late 60's/early 70's. Their lien position they have is pretty secure, especially with a shorter amortization. Not the greatest interest rate in the world, but their stage of life requires less risky investing. 

My question is this. What is the best way to approach a note holder to ask for a discount? 

For what it's worth, I have a great relationship with both. I transfer the money directly into their account a week before the due date every month. It's always early and they don't even have to go to the bank. It's easy and safe. 

So how can I convince them to take less?

[Candice Rambo]

@Will Gaston What is the worst they can say? "nope..sorry" but I just had a conversation very similar to this last week. Reach out and ask. I also agree that the rate you have on those is pretty close to a conventional number! good luck!