This is my first post but have been reading a lot on BiggerPockets.
I am looking to make my first investment in a fourplex. There is a property I am interested in that is owned by an older/retired individual. I want to offer him a deal including seller financing.
I am considering this offer because he is retired and older. I know someone living in the building and the owner takes forever to get things done and still does all maintenance on the property. I feel like offering seller financing will allow him to have monthly income from this property without doing any work, also it will benefit his taxes by not receiving a lump sum. I am only cautious and haven't offered this because if he is not financially savvy, I feel seller financing can be daunting. Any advice?
Also, what is typical for a down payment in this case?
I typically put 10-20% down if no agents are involved. Add 6% and a smaller chance of it working if there are.
I typically pay 6% interest and offer with a friendly letter of intent (LOI).
Older folks understand 'being the bank' or 'holding the paper' typically if seller financing might sound weird.
This seller sounds perfect for seller financing. A lot of people waste time with Jack and Jill homeowner on the mls. Good luck, Devon!
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