Motivating a Seller to Sell

[Rick Cutrera]

I'm after a triplex with a sale price of $800K.  I'm having to "coax" the seller into the deal.  Gross proceeds headed his way will be approx. $100K.  The seller's reluctance is the tax hit and where to move the money after closing.

His gross rents are $5000 per mo. and claims to net "a couple" thousand each month after paying PITI but not sure he factors in repairs or the value of his time spent toward management.

My partner suggest financing the deal at 7% using a wrap around and balloon. 

If he were to accept, he would earn 3-4% over his current note plus a full 7% on the $100K in equity.  

Is my proposal sound? Any other suggestions especially on the tax hit? He might be willing to make a 1031 exchange or open a SEP IRA but the case has to be compelling.

Thanks - Experts of BP