Seller Financing: need advice on how to pitch

[Kevin Prasad]

Hi all, I’m looking to negotiate a deal thats a mix of seller financing and conventional lending. What are some pros that I can highlight from the seller’s perspective.

Here are a few that I’ve come up with:

1) monthly income at a higher interest rate;

2) avoiding a larger tax bill by reducing the purchase price (on paper);

3) a promissory note that they could potentially sell down the road.

Any other major ones I am missing?

I’m waiting to connect with the realtor to get more information about the sellers background / potentially speak direct to build a bit of a relationship. 

For further background, I’m looking to purchase a spot around 750K, but want to seller finance 100-200k of the price to reduce the need for a large down payment / keep myself liquid for renovation costs. 

Would appreciate your guidance/thoughts. Thanks in advance. 

[John Clark]

Quote from @Kevin Prasad:

Hi all, I’m looking to negotiate a deal thats a mix of seller financing and conventional lending. What are some pros that I can highlight from the seller’s perspective.

Here are a few that I’ve come up with:

1) monthly income at a higher interest rate;

2) avoiding a larger tax bill by reducing the purchase price (on paper);

3) a promissory note that they could potentially sell down the road.

Any other major ones I am missing?

I’m waiting to connect with the realtor to get more information about the sellers background / potentially speak direct to build a bit of a relationship. 

For further background, I’m looking to purchase a spot around 750K, but want to seller finance 100-200k of the price to reduce the need for a large down payment / keep myself liquid for renovation costs. 

Would appreciate your guidance/thoughts. Thanks in advance. 

As a seller I would ask why would I sell to someone who doesn’t qualify for a FHA 203k loan. 

Seller financing joins me at the hip to the buyer. You’ve given me nothing about your experience to let me know you are competent and capable and not a flake. 

So what will be your answer to the inevitable question: why not a FHA 203k loan, or something similar?