Posted by David Alexander on January 16, 2000 at 22:58:53:
Number one thing I see is dont offer him any interest rate, let him offer you one. I go into my deals first offering a price and dont mention interest, sometimes I end up with deals structured with simple Interest, instead of compounded. The questions you ask to lead to this are what would you do with the cash if you had it, in some circumstances they will tell you that they are just going to put it into a CD earning 5%, and “voila” all the sudden 7% sounds really good.
Make more than a couple offers, maybe something like, for all cash one price, maybe for a little more of price you give him 50% now and 50% in five years, and then the last offer something like if he’ll Owner finance the whole thing you give him his price and your terms.
Best of Luck
A good book on negotiating RE deals for beginners is 101 ways to buy Real Estate by Wade Cook.