Posted by John (OR) on September 18, 2004 at 24:39:15:
Two answers.
The simpler the offer the easiest it is for the seller to understand and
accept.
Second, I pick the financing that makes the deal work. If you need the
tiered rate to make the cash flow stack up in the early years then be
prepared to sell the seller on why this is important to get the deal
done.
Be aware that the seller might have inputed interest to pay if they offer
a rate below what the IRS considers the min.
Posted by Trevor (OR) on September 17, 2004 at 15:08:07:
I am preparing an offer for a 4 - plex property. I am thinking about a few options for the offer. Which one is usually best in the end? All of them provide positive cashflow and I will probably hold the property for 5 - 10 years.
$164,000 with owner carry @ 6% for 30 years
$164,000 with owner carry @ adjustable rate
Year 1: 5%
Year 2: 5.5%
Year 3: 6%
Year 4 - 30: 6.25%