questions on how to pitch different seller finance options.

[Chance Humphrey]

Hello all. Im really excited to be here and start my ROI journey!

Yesterday toured a really unique property that im interested in buying in Colorado. Its on 2 parcels with a 3bd 3ba 4100sqft house. it has a man made pond on property as well as over 4000sqft of shop space between 2 large buildings. He lived there for 30 years and he owns the place outright but has not lived there in 4 years so the place is in need of some love both inside and out. Asking price is 500k but seems motivated. If he is willing to do 100% owner finance im comfortable paying the 500k and structuring a deal based off of that number. anything less and i will be offering between 435k-465k

Ideally i would like to use this as a STR once its back to its previous glory. but would not be opposed to flipping it if the numbers make sense.

We pitched owner finance and he was willing to listen but would not send his numbers he wanted a pitch.  We don't know right now how much he is willing to finance so i i wrote up a few offers to send to him, can i please get some feedback on any and all of these schedules. 1 is a full owner finance, 2 is half, the others are interest only options, 1 for the full amount and another for financing the down payment. Im also considering asking if he would accept a 6 month up front payment as the down payment and start making payments in month 7 because the house will be under construction for 4-6 months minimum with no income. 

I know there are a thousand different ways to structure seller finance and these were just the beginning of my thought process. Im still waiting to hear back from him as he's retired in the Philippines. Im fairly comfortable speaking confidently about the benefit or "win win" of seller finance but am nervous about offending him. He is represented by an agent as am I and we are discussing the possibility of direct contact but as of now we are going through the agents. 

SO in short (long haha) should I be asking what HIS NEEDS ARE? how much a month or how much up front he needs and then structure a deal based on those figures or should i "pitch" any of these ideas and see if he bites? 

100% FINANCE:

Monthly payment-$2,994, Purchase price- $500,000, 10% down- $50,000, Owner carry- $450,000, 5 year Interest- $153,223.83, 7% Interest, 30 Year term, 5 year balloon (1-5 year extension based on market value and ability to refinance) 

50% FINANCEMonthly payment- $1,580, Carry amount- $250,000, 5% Down- $12,500, Owner carry- $237,500, 5 year interest- $80,868, 7% interest 30 year term, 5 year balloon (1-5 year extension based on market value and ability to refinance)

INTEREST ONLY: DOWN PAYMENT

Monthly payment- $500Purchase price- $100,00010% down- $10,000Owner carry- $90,0005 year Interest- $30,0005 year balloon- $90,000Total Payout-$130,000