How to search for creative finance deals

[Anique Akhtar]

Hello,

I am interested in getting into a house in a particular neighborhood for long term hold. However, the current interest rates with the downpayment makes it not a good deal. I am also seeing houses reducing their prices and being on the market for a longer time. However, this is still a HCOL with a low inventory and difficult to find properties. I was hoping to get into a house with 70-80% conventional mortgage and do the remaining 20-30% as a 5 to 9 years balloon with interest only payments. This method does not save me on monthly payments but it does save me from taking money out of my other investments for a downpayment on a new property which is very important for me. In 5 years, I can easily pay off the balloon payment so that is a no-issue for me.

I have a few questions and I was hoping the more experienced members can help answer these:

1. Does my approach seem realistic or is there a better way to go about it using subto? I feel like subto would be more difficult to find and/or convince the seller to do and for them to get 70% upfront and 30% balloon would be an easier sell?

2. What interest payments should I offer them in the current market? I would be happy with 4% but not sure if that is realistic.

3. How do I convince the seller's real estate agent to at least show or pitch my offer to the seller?

4. Is it possible for anyone to simply show me their "text", "messages", or "email" on what they write in their informal offer? I want to send this informal offer to the realtor through email. I am afraid I might use the wrong terminology and end up confusing the seller. I want to make it as simple as possible for them to understand.

Any help would be appreciated.