Seller financing

[Asson Denis]

Hello guys, I need your help on this deal, any advice will be greatly appreciated.

I am living in TEXAS Killeen area, I own a 4plex, I live in one unit and rent the other 3 temporarily (15 or 30 days rental, fully furnished)

I am negotiating a deal with an investor that’s been doing the temporary rental in the area for over 20+ years.

Here is the deal: 2 buildings meaning 2; 4plexes close to each other. All of them are fully furnished, ready for the temporary business rental (Turnkey). He said either I buy both or none he won’t them separately.

Asking price is $300 000, one of the property is already paid off, the other one he got a rough balance of $60 000.

I asked him if he would consider owner financing, he was asking for explanation he did not understand. I explained to him that I will give him a down payment and finance the rest through him instead of a bank.

His main focus was to cash out at the closing table and diversify that money to other businesses like stock and so on, but when I explained to him it could be beneficial for him, because upon our agreement I will pay him interest. He said he never did a deal that.

Here are the questions he was asking: who is going to be in charge of the properties?

Who is going to be responsible for their taxes?

I said to him, it depends on how the deal come out, but I did not know how to fully answer those questions. If you can help me answer those questions I will appreciate that.

At the end of our conversation, he said why you don’t contact a real estate lawyer to put the deal together to see if I will agree with it. I said to him yes I will do that and contact him this week.

This is the first time I am trying those type of deal. Please could you guys walk me through the steps to put the deal together? Of course I will contact the attorney this week.

• 1.)What I would like to know: how to negotiate with the lawyer?
• 2.)What will be the best option to make the deal happen? Even though I don’t want to confuse him with so many options.
• 3.)What errors to avoid in the process?
• I look forward to get as much information from BP master mind.