Owner Finance Scenarios for Former Adult Care Home

[Leslie Beia]

Hi All!

I'm working on acquiring a former Adult Care Home from a retired couple, and I'm doing research ahead of a conversation with them about owner financing, which they are open to. The building has been on the market almost a year and is probably still a bit 'overpriced', although I have yet to do a comp deep-dive with my agent (soon!). I know that OF agreements will be whatever two parties agree on, but I'm hoping to gain a better understanding of what might be possible that I haven't considered. 

A little context: the building is structurally sound and they have done major updates such as septic, generator, and sprinkler system, and all mechanicals are recently inspected and tagged. The interior and grounds need a major renovation, which I am estimating at around 1MIL. They are are asking $700k currently for the building, down from a starting asking price of $950k. They inherited the property from his father, ran the home for many years, are facing some health issues and are retired. I know they are anxious to sell. The building has been passed over by many people due to the layout, but I have a creative and viable solution (boutique hostel/hotel hybrid in well-established and overpriced tourist destination). 

I'd just like to get a sense of some different scenarios that might be appealing to them, while mitigating my acquisition costs. And is it better to lead with suggestions or follow based on what they say they are open to? Thanks for any input!!