Creative financing options for distressed property

[Jesse Simmons]

Real-estate Rookie here, 

I am going to try to make this as concise at possible.

There is a mixed commercial unit for sale in my market that I have had my eye on for awhile. The property has been on the market for at about 2.5 years. It has a lot of potential, but will need a lot of work. I believe it is over priced (originally for sale by owner for $280k,later listed through agent at $360k), but I feel like the seller may be open to a creative financing option. 

Property includes: (2 buildings)

The large old building with main level office previously a dental office and potential for build out second floor of (1)-1br efficiency apartment, (3)-2br/1bath. This building will basically need a full gut reno.

 A smaller building that used to be a small community bank that could easily be retail space/ cafe.

I will qualify for conventional financing for this property, but with interest rates being what they are, I'm not sure that's the best option. Also considering the length of time/ amount of work that needs to go into the property I may have some leverage to enhance the overall deal.

I guess my question is what should I do? What are some creative options of presenting a seller financed deal? How could I best secure financing for the renos to get each unit up and income producing? Really ANY advice would be welcomed. 

THANKS In advance

[Benjamin Aaker]

Determine what price you can pay for the property. That will involve settling on your plan for renovating. Keep in mind that office is down right now and it could take an extended period to fill.

Try to determine why it hasn't sold for 2.5 years. Maybe the above. It can't hurt to ask the agent. Try to find out what the seller's pain point is. Seems like they aren't in a hurry to sell if it's been on the market that long and they have raised the price. It's likely they need to get a certain amount, possibly for a mortgage. You can ask what that is and sometimes you'll get an honest answer. 

With seller financing, you are already on the back foot so it seems like this would be a good time to make an asking price offer if your numbers suit it. The key will be to set up terms so your monthly payment works. Then you both get what you want. Good luck.