Flip with Seller Holding the Note - What do I do?

[Lorenzo Hatten]

Hello Everyone,

I have been speaking with a seller who is offering a property in Washington DC. The property itself is a Single Family home 2 bedrooms 1 bath and its Zoned R2. The seller is asking well over what my Comps would say the home is realistically worth. However the seller is willing to accept Cash, Or to hold the Note for a Rehab.

He says that he is an Investor himself but my concern is that the price he is asking is over 100k more than anything listed on the market that is similar to that property. Im finding properties sold for $250k-290k with Full interior rehabs that are Sold. My initial thought was "Give him an embarrassing offer and see what happens" Possibly Reassign it out to someone. But I cant help but think this may be the perfect opportunity to do my own Flip.

If the seller is willing to hold the Note. What would be the best strategy to make this work? If it is even possible.

Should I get the price down and work with a contractor and assume responsibility of the note myself?

Basically using sweat equity in exchange for the properties equity when its done?

Since he is "Holding the Note" he is taking the place of the bank. So even if I help Rehab. What would be left for me to benefit from? Overpriced Note that the seller has rights to.

Any questions I should be asking him to get a better handle on the situation as a whole?