Owner Finance Deal

[Michael King]

Hi everyone,

    Let's say there's an older gentleman who owns a multi-family property free and clear. Bought it back in '85 for $30K and is selling it because he lives a good distance away from the property, is older and looking to retire from being a landlord. I'm guessing he wouldn't want to carry back a 30 year mortgage considering he is older. Would a good approach be to see if he'll carry back a 5 to 7 year low interest mortgage with a balloon payment when the 5 to 7 years are over? If so, what are the benefits of doing this other than buying 5 to 7 years of owner financing.

    If I did this, what would be the best exit strategies to use? I would be looking to pass the property off rather quickly as opposed to holding onto it myself for a number of years. Retail buyer? Assign it to another investor?

    Thanks,

                  Mike