Making an offer

[Ryan Van Fleet]

So I found a deal that I want to make an offer on. This deal is off the MLS and he has offered Owner Financing.

What is the best way to approach this?  Should I send him a formal letter?

Do I specify the owner financing terms that I can accept and negotiate from there. Or should I tell him I accept the price with owner financing and let him dictate the terms.

The one concession I need is an out after an inspection of the foundation.

[JD Martin]

Those terms should all be part of your sales contract, since that is going to be the source of your financing. You should negotiate terms just like you would negotiate anything else. Your sales contract should have standard language giving you a time frame for inspection and rejection. Owner financing terms will (should!) depend on the nature of the deal. If it is a property that will be difficult for anyone to finance, or if you are paying some type of price premium, financing and interest should be in your favor. If you are the problem, however, in that your credit/income is spotty, you should prepare to probably pay a bit more for being a riskier buyer. In today's rate market, all but the worst buyers should be able to get 6% or less on a conventional mortgage, so if you are being presented higher terms than that I would consider bringing your own financing or walking away.