Seller financing deal

[Ryan Hesselberg]

Hey! I'm looking to purchase I multi use building that has value add. Seller wants 200k. He had a couple agents lol at it and guess is worth 150k. Seller said he may be open to seller finance. I'm thinking of giving him what he wants (200k), as long as he accepts my terms of 0% interest and zero down. I figure if I were to get a 150k loan for 30 years at 4% with 20% down, I'd end up paying 206k over the life of the loan anyway. So he gets his 200k and doesn't take the tax hit up front and I get a low payment and keep my capital, which will help me fund the rehab. What am I missing? Thanks!

[Joe Villeneuve]

Why would the seller take the same sale price from you that they could get anyway, if they had to wait 30 years to get it all...and there would be no incentive (0% interest) to do so?

You're heading in the right direction, but your terms aren't going to be worth anything the the seller.  I understand the tax savings by getting paid in pieces instead of one lump sum, but zero down and 0% interest would be laughed out of existence.

Like I said though, you're heading in the right direction.  Here's what I would consider: 

1 - 10% down, 2% interest,  over 30 years.