Free and clear: Cash offer or seller fin.?

[Joe Butcher]

Heres the situation:

The house is owned free and clear

Seller is motivated but not desperate. It was listed on MLS and didn't sell.

ARV: $150k

Rehab est: 20k

My cash offer: 80k

I dont think they will accept the cash offer, so I want to offer a seller finance, just not quite sure what to offer so here is one scenario I came up with:

$135k with 5K down at 5% interest, amortized at 30 years with balloon due in 5 years.

Does that make sense? Does it sound reasonable? I am not totally familiar with seller financing so I may be way off here....feel free to tell me I'm crazy or whatever. If it's not an attractive offer, then what is?

Joe Butcher

[Bill Gulley]

Joe, sorry, quickest way to say this is just by saying, you have some great misconceptions about seller financing and setting values and structures. You're headed for problems. There are tons of threads on SF here on BP, start reading those posted in the past year or two, nothing older really. See an attorney! :)