Requesting Seller Financing

[Jacob Bolinger]

Hi BP! I am looking for some advice on making a deal happen and hoping that someone might have some suggestions.

An owner of 3 duplexes in the Minneapolis area recently contacted me, knowing I own a duplex a few doors down from two of his. He explained to me that he is in no real hurry to sell the properties, but wants to be done being a landlord. He is looking to roll his money into a franchise opportunity and wants to do this through a 1031 exchange of all the properties. He further explained that he does not want to list the properties, deal with showings, realtors, and potentially having one of the three deals fall through at the last minute. All three are in great locations, long term tenants, but need cosmetic updates.  From briefly speaking with him, it sounds like he is looking at around a $1mil price point, which would make these a solid investment.  2 of the 3 have Lake Minnetonka, MN views, and down the road, mine just appraised for $503k (similar property, but not an exact comparable).  The other duplex is near the University of Minnesota.  

I informed him that I would take all the information that he provided and go over it with him next week over coffee. Due to his patience in needing to sell, desire to be done being a landlord, wanting true passive income, and needing to sell all at once, I want to explore the option of seller financing. At the end of the determined time, I would close on all three at once, alleviating the other headache of making that deal work.  Without partnering, I would not have the capital to acquire these properties otherwise.  

I’m looking to see if anyone would give some advice on how to present this to him, things to consider, or if I should even approach this through seller financing.  Any help will be greatly appreciated. Thanks in advance!