Seller Financing

[Marc Cesar]

Hey guys, I'm a present wholesaler who's looking to think creatively when it comes to real estate acquisition. I make tons of cash offers that tend to get rejected yet i feel that if i approach them differently aside from the normal low ball offer i may get more deals rather than let them burn out.

I presently have a deal in North Philly. The seller is asking 35k for the property but will settler for 30k. He valued it at 65k based on the area. The seller is a contractor who put some work into the house already but didnt finish. All it needs to be rent ready is closed walls, plumbing in the kitchen and bath, windows, doors and flooring.

My initial offer was 20k ALL CASH (which was countered for 30k flat) based on the activity in the area which wasnt much for the last 12mths.

Seller wants to sell but doesnt want a low ball offer due to initial investment he made with the repairs.

I'm not well versed on seller financing but i have a 3 option letter of intent to purchase to present with the following offers:

1) 20k all cash 

2) 5% down, Seller to finance the balance at 6% interest only payments for 10 years (term) with full balance payable at the end of term

3) 5% down, Balance to be paid in 250 equal monthly payments.

My question here is how does the seller financing work and what are the pros and cons??

Im an advocate that all leads get an offer (whether motivated or not). How can I approach this deal and make it a win-win??

thanks