Barriers to owner finance

[Jocelyn Borg]

There's a possibility of Owner Finance on a really great rental property that is near my home and very well kept. The owner is older and getting tired of keeping up with his rentals. I believe he'd be very willing to entertain owner finance on this and possibly more of his properties, but there are two major barriers:

1) He would take a pretty big capital gains hit; the properties were paid in full long ago

2) He has 2 other family members on the deed, and the relationships are not all well

Do any of you have suggestions for how I might overcome these barriers and turn this into a win win situation for the both of us? 

Thanks in advance!

[Edward B.]

@Jocelyn Borg, find out what he thinks his cash flow is from the properties and then structure the seller financing to maintain that. In addition to the tax benefits you can sell him and the others on the deed that they can maintain the same cash flow or near to it without the headaches of tenants, termites, and toilets. Just an easy check in the mail from you every month in the form of a mortgage payment. I would not try to hide the fact that it is only for a designated period of time, though, until the loan is paid off, but depending on where they are in life you can probably make that work. Also, always ask what they intend to do with the money. If they don't know or their plan is to just park it into a CD or savings account, you can offer them a much higher rate of return. If they want some mad money for something, see if you can cover that with a down payment. Or get regular bank financing on a low LTV amount, say 50%, and have them carry a 2nd. Just some ideas.