how to negotiate/structure this deal

[Will Kirkendoll]

hey BP

just looking for some advice on a potential deal. I got a call from a yellow letter from a seller. really only motivated because I sent a letter but will sell if "price is right". he left on my vm that he wanted 69k for it. 3/1.. remodeled kitchen and bathroom new carpet and paint. I called him back spoke with him for about 30 mins. he told me has a renter in there bringing in 775/ month and 1431 taxes a year. he wants 69k. I asked how he came up with that number and he said he dad taught him to sell at 100 times the value of the rent. (lol) but he said he knew it wasn't worth that much. its not even worth 69k. I told him recent comps sold for 55-60k. I asked him whats  the lowest cash price he could do and he said he would have to talk to his partner. I also asked will he be interested in seller financing. he said he would consider it but would like to be paid in 5 years. he's in his 60's and doesn't  want the government to take all his money when he sells lol. he has 8 total properties. my question is what kind of seller finance offer can I make and the structure for it to be a deal if its even a deal.  any advice will be appreciated 

[Account Closed]

Originally posted by @Will Kirkendoll:

hey BP

just looking for some advice on a potential deal. I got a call from a yellow letter from a seller. really only motivated because I sent a letter but will sell if "price is right". he left on my vm that he wanted 69k for it. 3/1.. remodeled kitchen and bathroom new carpet and paint. I called him back spoke with him for about 30 mins. he told me has a renter in there bringing in 775/ month and 1431 taxes a year. he wants 69k. I asked how he came up with that number and he said he dad taught him to sell at 100 times the value of the rent. (lol) but he said he knew it wasn't worth that much. its not even worth 69k. I told him recent comps sold for 55-60k. I asked him whats  the lowest cash price he could do and he said he would have to talk to his partner. I also asked will he be interested in seller financing. he said he would consider it but would like to be paid in 5 years. he's in his 60's and doesn't  want the government to take all his money when he sells lol. he has 8 total properties. my question is what kind of seller finance offer can I make and the structure for it to be a deal if its even a deal.  any advice will be appreciated 

 With the new tax laws the formula changes. Start with telling him you will buy for $55,000 at 5% interest for 30 due in 5 years with zero down. You will take over the maintenance and problems of being a landlord. He gets lower taxes and doesn't have the expense of listing with an agent (usually 6%). If he owns the property outright do owner financing, if he has a small loan do a Wrap. Offer to do this on each of the other properties. There are other questions to ask and considerations regarding entities but this should get the conversation going. Let him counter offer if he chooses, you need to know what he is thinking. It shouldn't be a "take it or leave it" offer but more of a "how do we make this work" type of thing.