Posted by B.L.Renfrow on November 10, 2000 at 20:09:02:
It really depends upon the needs of the seller. If he’s not particularly motivated, there may not be a lot you can say to change his mind. And without knowing the numbers, it’s impossible to say whether you’re wasting your time or not.
The current market in your location is a factor also. If you’re in an area where houses sell immediately for asking price or higher, it will be hard to convince him he’d benefit from holding paper for you.
On the other hand, if there are lots of houses and few buyers, you could point out to the seller how he will continue to have holding costs, then there’s the broker’s commission to pay upon selling, both of which could be avoided by selling to you now.
You need to find out what the property is worth by checking comparable sales. Then, figure out a number that works for you and if the seller is interested, find out what he needs and make him an offer.
If the seller wants some cash now, and you don’t have any, you could always structure a seller-held note which could be sold for cash at closing. Even if you have bad credit, the note will have some value…though the discount might be significant, depending upon factors like your credit score, the LTV, your cash in the deal, etc.
If you want more details on this option, post your question, along with the numbers, over on the note forum.