Trying to buy with seller financing

[Jesse Holshouser]

I found an off the market duplex, contacted the owner and he is interested in selling. He contacted the agent he usually works with in order to determine an asking price and she is showing me the property on Thursday. When I originally spoke with the owner, I expressed interest in buying the property with seller financing and he said that was a possibility but was concerned about me not having skin in the game and deciding not to make payments on it anymore. I would love some advice on how to negotiate a seller financing deal and I am also wondering where the agent plays into that kind of deal. The house isn't being listed, but can I still buy with seller financing? I intend to make it clear that even if I only put down 10% with seller financing, he could foreclose on the property if I stop making payments, he gets the property back and can keep that 10% down payment. So he wins either way. I would also probably suggest a 5 year balloon and either pay him cash for the remaining balance on the note, or refinance. If anyone has any thoughts or advice, it would be most welcome!

[Jesse Holshouser]

@Larry Turowski @James Wise, I see your points. The man is in his 60s, retired and doesn't want to fool with the properties any more. He actually has a 7 unit also for sale but wasn't planning on listing the duplex yet. He doesn't need the cash but wants to relax and enjoy his retirement so my offer to him was to provide him with income in the form of mortgage payments without the hassle of collecting rent, placing tenants, and doing maintenance and repairs. He seemed to like the idea but was a bit skeptical. I appreciate your input and will see if I can find something to sweeten the deal!