You have not given any figures so I can not give advice on whether this is a good deal but I can give you some general advice.
The first thing I would do is determine what sort of profit margin you are looking to get from each property. Remember to do a full analysis including expenses, taxes, occupancy. Once you have determined what short of profit margin you want that would make the deal attractive to you then you have somewhere to work from. Determine what price, interest rate, and amortization you could offer for each property and meet your requirements for a successful deal. I usually then offer slightly below that and see his response. He may accept right on the spot or counter offer. If he counter offers determine if his counter offer is reasonable and work off of that. Good luck.
Hi,
I need advice on how to construct a deal with owner financing. I have a seller who has 3 of his rentals that
he wants to owner finance for me. All of them have
pretty long term tenants in them (the min is 3 yrs).
My plan was to leave the tenants in them, and when they
move, do a lease option for the new buyer.
The seller is motivated and flexible, and he is retired
and lives out of state and does not want to be bothered
with them any more. I hate to say it, but I am clueless
on what to do now. We meet on Oct 27th.
He does not want cash because of captial gains, and he
is willing to let me buy them for 35K under what the comps
are.
I guess my question is, how can I create a “Win Win” for
the both of us? I do not want to blow the deal.