Owner-Carry Loan Question

[Bryce Henson]

Hey all, I'm a pretty new investor and I have a question regarding owner-carry financing. As rates continue to increase, I'm learning more about creative ways to finance. When it comes to negotiating owner-carry financing, is it uncommon to negotiate a lower sale price along with owner-financing for the same sale? It would stand to reason that the seller would think that because they're agreeing to carry the loan that they would then ask in return that the buyer won't try to renegotiate the sale price, but perhaps that's short-sighted thinking? As always, I appreciate the hive mind and all of your help! Have a great day. 

[Steve Vaughan]

Quote from @Bryce Henson:

When it comes to negotiating owner-carry financing, is it uncommon to negotiate a lower sale price along with owner-financing for the same sale? It would stand to reason that the seller would think that because they're agreeing to carry the loan that they would then ask in return that the buyer won't try to renegotiate the sale price, but perhaps that's short-sighted thinking? I appreciate the hive mind and all of your help! Have a great day. 

 I like to offer with a letter of intent which outlines 2-3 ways that I can buy.

Because in general cap gains tax rates are more favorable to the seller than interest/ordinary income rates, I offer one scenario with a higher price but lower interest and vice versa.  I also vary my down payment %. The seller can choose but not combine. 

With the multiple offer scenario, sometimes the seller forgets option 4 - no thanks. 😎