Creative financing structure for this deal

[Joseph Grullon]

Hey BP, I spoke to a seller yesterday. He is interested in selling his property as he is retired and would just like to cash out on this rental he’s had for years. He stated none of his children want the property, therefore he would like to just sell it. Here’s the caveat, he took a personal loan against the home for $105,000. He would like $340,000 for the property, local comps value the property at around $400,000. He said he would be a little negotiable, in order to get the deal done but not much.

According to him he would have to pay a pre-payment penalty if he paid off that loan now. Otherwise he said he would be willing to wait the 14 months, in order to not be charged the pre-payment penalty.

Does anyone have any tips or advice on a potential subject to structure for this deal. Something where I could offer to acquire his property now for some sort of agreement and then a balloon payment in let’s say two years.

Thank you guys as always,

Joe