help structuring an owner financed deal

[DJ Cummins]

Hello Everyone,

So…my wife and I bought a 4 unit property about six months ago, using conventional financing(20% down).We have added some value, and are making pretty good money(finally…took a few months).The people we bought the property from was an older couple who own about 5-7 other rental properties.They retired and sold their farm, and rolled the proceeds into rental properties.Our apartment building was the first thing that they had sold.This week we received a phone call from them, asking if we were interested in buying any of their other properties.They also mentioned that they would be open to owner financing with as little as $1,000.00 down, simply because they liked us, we gave full asking price for the apartments, and we remind them of a younger version of themselves.I don’t really want to try and buy ALL of their properties, as all but 2 are located an hour from my home.One of the properties is a good deal.It is a duplex, and they want 66k for it.Rent is around $1050.00 per month.It is two houses on one lot.(I’ve talked to my banker, and I won’t have a problem refinancing the property even being a non-conforming duplex.

So…how do you structure a deal like this?I have read quite a bit about it, and I bought @Brandon Turner and @Ben Leybovich’s books on creative finance just to learn more about how to do this.  What types of terms should I try and negotiate?  I would appreciate any advice, as we have only invested with the boring ole 20% down before, so this is uncharted water for us.  I really like the idea of only putting the 1k down, as we can try and buy another property in the next few months with conventional financing.  This would be a great kickstarter towards us purchasing more units over the next few years.

Much appreciated, Y’all!

DJ

@Brandon Turnerundefined

@Ben Leybovichundefined