Calling All Creative Minded Individuals

[Nathan Harden]

Alright. I have thrown multiple offers at a seller that only wants to sell his properties via seller finance. I have thrown about 4 offers out his way and at this point it almost feels like I am negotiating against myself. He didn't even give me the numbers that he wanted until I gave him the last offer and it "offended him".

He originally told me that he wanted $5k in passive income of just interest only. Told him that I was not the guy for that because I needed to one day OWN real estate so attacking principal is a day one necessity. Went home plugged in a purchase price of $1,250,000 ($625k for each duplex) then 10% down with a 3.5% interest rate to get him his $5k a month.

He told me a 10% DP wasn't enough, didn't like the purchase price and asked If I was serious with a 3.5% interest. 

Then I told him that I was walking away because I obviously didn't know what he was looking for and I wasn't going to just negotiate against myself without even having a remote idea of what he was looking for. He came back with "off the top of his head numbers"

$675,000 pp for each duplex (market value about $625-$650k)

$100,000 dp each duplex 

5% interest

7 year ballon (Amortized over 30yrs)

Not terrible. At least I got some numbers. 

Here's some back ground on the 2 duplexes combined.

Fully occupied at $9k a month in collected rent. 

$13k in yearly taxes between the two duplexes

About $200 a month in water between the two (no sewage, on septic) tenants pay all other utilities

Insurance- $200 a month

Self managed

I truly feel like I have given him some real win-win offers and nothing is sticking. Yes, I get it. This may be a dead end but the fact that he finally at least gave me some numbers shows me there is a glimmer of light at the end of the tunnel. Really, my biggest concerns are monthly payment and down payment. I can give him his asking price if he helps me out with the terms. I don't want to put $200k down so I would love to hear how else someone would structure it with only $100k down and then wrap the other $100k into a monthly payment. 

I have a couple of seller financing deal structures under my belt, but that does not make me an expert. I would love to hear from everyone else on what their thoughts are on creating a win-win. 

[Chris Seveney]

@Nathan Harden

Walk away. I wouldn’t pay above market value for anything right now. This person does not need to sell and is just trying to squeeze every penny out of someone