How to counter a seller financing counter offer?

How to counter a seller financing counter offer?

Member since 2018 · 162 posts · 73 votes

I made an offer on a multi, which included 93% seller financing. I offered full asking price ($400,000). COC = 17.2%. Seller countered saying he will finance 50% (COC = 7%). This all done without ever meeting face to face. I'm very excited because that alone is a heck of a feat. Here is the problem: I don't know where to even begin countering.

If I was going to put down $200K, I'd put it down on an $700-$800K deal, which would be almost double the units, with a commercial loan.

 I'm not sure yet, the seller's motivation for the 50% down counter, probably just a trust thing....I will try to find out. Any ideas on where to go from here?

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  • Kansas City, MO · Member since 2015 · 609 posts · 321 votes
    8y

    I'd guess he wants more money to play with right now, but doesn't need the whole thing to do whatever it is he is wanting to do. 

    If that's true, it might be hard to get him to move off that, but doesn't mean you should give up. 

  • Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    8y

    I think he made you a very fair offer, not knowing the area or property.  Your original offer was asking for more than a bank would give you, which with owner financing almost never happens.  You can counter whatever you want, but you have a pretty decent bird in the hand in my opinion

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