Seller financing -down payment

[Tyvon Davis]

I've stumbled upon a fantastic opportunity with solid cash flow! I negotiated seller financing for: - Purchase price: $400,000 - Monthly income: $6,000 - Interest rate: 4% The seller requests a $160,000 down payment. My dilemma lies in sourcing the $160,000 down payment.
Cash on cash return is 23%

Thanks for the input 

[Nathan Harden]

I love all of the numbers except for the DP. I never want my entry fee to exceed that of which I would get from a bank. Look up the tax bracket and help show the seller how much money they would be giving away in taxes right off the bat from that $160k (unless they are doing a 1031)

All in all. Great terms besides the DP. Every investor is different but doing a 40% DP then closing costs on top of that, I would walk. Too many other deals out there to be putting 40% down. 

[Andrew Postell]

@Tyvon Davis welcome to everyone's dilemma!  None of us have 40% down to put on a property.  Standard financing would require 20%-25% down and that's hard enough!  So, if this is what you really want to do then you need to partner with someone to get it done.  This is assuming you have no asset type to do a cash out loan on.  If that's not the case, then let us know...otherwise, partner up.

[Tyvon Davis]

What does partnering up look like? Also, what would you rebuttal back to the seller?