Hi all,

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?

Thanks!

Devon

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!

@Devon Moore Congrats finding a place that sounds perfect for seller financing. Hopefully the owner will be open to it. I've usually heard of people putting 10-20% down like @Steve Vaughan mentioned. Good luck!