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I want to use seller, creative financing and am new to this. The home i want to purchase is in some but not serious disrepair needs about $15-20,000 in repairs to fix it up. It is in an excellent neighborhood in Knoxville, TN – generally regarded as best neighborhood in town, on a great block. Average house on block is worth 400-750,000. The seller inherited house from deceased parent, is asking 299,000. He lives out of town, wants to sell, is open to seller financing and asked me to make an offer. I believe the actual value to be about 260-270,000. But he may take less. I can get $1800 – 2000 month rent. What deal would you propose? I can offer a down payment if necessary, would like to avoid that… Thanks in advance for your help.
Edward,
I like to make 2 – 3 offers and let the seller pick the one they like the best. If you make one offer they will say yes or no. If you make 2 – 3 offers the seller is more likely to pick one.
This is what I’d probably offer based in the info you gave:
Offer #1 $167,975 cash —
Offer #2 $no money down, $200,000 split in to two notes. $100,000 note paid at $500 per month for 200 months. when that note is paid off 2nd note kicks in – $100,000 note paid at $500 per month for 200 months.
Offer #3 $240,000 – with payments of $1000 per month for 240 months – with 3 – 5 months paid in advance if necessary
would you be perfectly happy with either offer he picks?
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