Structure seller finance apartment purchase

[Jason Skinner]

I am evaluating 6-10 unit apartment buildings and wondered how others have structured seller finance deals?   

[Melanie P.]

Quote from @Jason Skinner:

I am evaluating 6-10 unit apartment buildings and wondered how others have structured seller finance deals?   

 The only way you can get anywhere on this is to have an early discussion with the seller of whether they would consider holding the note, but you'll need to figure out what appeals to them to get them to do it. I've most often seen it with sellers who aren't interested in doing a 1031 and they save some on taxes, earn interest, have a swtream of payments, but no obligation to operations/maintenance. 10 years or less is likely. Doesn't mean you have to amortize over that time period - for example if seller wants all their money within five years you can do a 15 or 20 year amortization with a balloon due at the five year mark. Lots of minor points to negotiate and don't think that because they're giving you a loan that the purchase price is no longer negotiable --- it most certainly i!s