Proposing Owner Financing to a friend

[Matty Foley]

My wife and I know a gentleman in his 60’s that owns 30+ residential rental properties, nearly all owned free and clear. All of the properties are currently leased and cash flow nicely. We are close enough to this person that he has discussed leaving a home for us in his inheritance, however I’d like to work on acquiring a property or 2 from in 2020.

My question: other than then him just wanting to help us, what is his benefit to him in selling one of the properties to us with owner financing? He is making income off the property and we would basically be paying the monthly P&I payments with that income. Is there a way to propose this to him that we can add value to him? I’d like it to be fair to both sides, but I’m not sure what he gets out out of it. He’s wealthy enough he doesn’t need the cash that would come from the sale of a property. Any suggestions?

[David Wandel]

I would ask him if he would consider selling me a house or two on financing. I would then offer to take any house that is vacant or having a tenant that needs to be evicted. Selling point to him is that he doesn't need to turn the property over.

I have an older gentleman that sells me all his properties once he has a turnover/eviction. He said he's too old to fix them up any more.

I would guess he is not self managing , but he still has the turnover costs to pay.