Seller Financing + Traditional Bank Loan

[Shelley Rubino]

I've never done creative but I'm looking to revive a deal that is stalled on price. The seller lives in the house and rents out ADU STR in a beach town. I would do the same. They paid 200k and want 1.4m and they are stuck on their number. I'm hesitant to go that high because I will be renting my current primary which limits my capital. I just wanted to brainstorm ideas that might help us come to an agreement. Things I have thought of:

- Seller finance part of it at a lower rate. Can this be done in conjunction with a traditional loan? If so, is that loan disclosed to traditional lender or just between you and seller?

- Let them continue operating the ADU for some period of time..they like the income it generates. Maybe do an 80-20 split where they get most of income?

-other ideas welcome!  

Thank you for any advice/ input!