Was there any interested parties or offers?

I don't know where in Texas you are closing this or the parties involved. 

I think it starts at 6 but the first part is just networking - a fair number of people come in late. 

It is a beach RE in a party area.  

Reading about Dallas and how hot it is, you get mixed opinions between "there are still deals everywhere" and "you're late to the party, the time to be investing was 5 years ago." 

They must be capital gains that would be recognized and from a sale or exchange with an unrelated party.2.

Ask yourself, what is your friend bringing to the party to compliment what you bring?

(e.g. contiguous)- Comprised of 4 parcels:P1 - 70 acres with 2250sqft 200yo house and 20yo barn.P2 - 35 acres with under conservation easement.P3 - 5 acre minor sub division home lotP4 - 5 acre minor sub division home lotSITUATION- Seller is 70yo and retiring in 2019- Seller has heIrs who are absent and uninterested in owning the property (will eventually sell inheritance)- Seller is a frIend and neighbor of the famIly- Seller (and our famIly) have preservation/non-development hopes for land in the neIghborhoodOUTCOMESFor the Sellers:- Immediate cash lump sum (property needs some work)- "Guaranteed" monthly/annual payments for deal term- Retain ownership and occupancy of real estate until they vacate- Seller retains ownership if buyer defaults- Continuity of neighborhood legacyFor the Buyers (us):- Acquire property rights- Fixed sale price- Known caretaker/occupant- Continuity of neighborhood legacyDEAL OPTIONS- $450-500k sale price- 10% down- 20 year term- 0% Interest- Land ContractThis seems like a good option to consider in terms of managing tax impacts to both parties, but at the cost of fewer “ownership rights” for both parties.- Seller FinancingThis seems like a good option to consider in terms of better “ownership rights” for both parties, but at the cost of trickier tax implications.

@Ash Leigh, Although it's not strictly forbidden to purchase property from a related party the IRS is very skittish about it and the charge of shifting basis and step transaction is all too common. 

Transparent disclosure so all parties know what's really happening is the main concern, at least to me.