Three levels of offer to Homeowner??? Seller Financing?

[Thyra Dixon]

Hi BP, I need help! 

To date, I've bought all my flips and rentals from either the MLS or a wholesaler. Recently, I've started marketing directly to homeowners. So being the wholesaler is new to me.

Well, I finally got a call from my marketing and met with my first distressed homeowner this morning. They are, of course, totally unrealistic in their expectations. Shocking, I know. 

Here's what they expected:

House is worth.   $185,000

Repairs needed.  $ 20,000

What they want for the house $165,000

Here's where I'm at:

ARV $176,000

Repairs $35,000

Holding Costs, Buying & Selling Closing Costs & Realtor Fees $20,000

Profit $ 25,000

MAO $96,000

And they owe $97,000.

I know I've heard Brandon and David talk about making three levels of offers to homeowners but I can't find one of the episodes to help me figure this out. I know the lowest offer is for straight cash which would be my $96,000. And I know one of the offers is if they do seller financing. I think this would be a good option because they are current with their mortgage and taxes. 

Does anyone know the third offer? And have any advice on how to structure an offer like this?

I'm thinking of offering cash for keys + assuming their mortgage payments + some cash at close.

Thoughts? Advice?

Thank you for any help!!