Seller Financing - How to make offer look atractable to seller

[Robert Gullickson]

I am a buyer interested in purchasing two condo's from a local investor. I would like to do seller financing. Each property is listed at $70K. Seller told me his mortgage payment is $375. I am thinking about proposing a 5 year ballon payment where I would pay him his $375 monthly payment plus10% interest (total of $412.50) with a down payment of $2K on each property. This is my first deal and wanted opinions on how this deal sounds for me the buyer and for the buyer. Thanks a ton

[Jon Holdman]

You could phrase it like this. Figure our his loan balance in five years. Say it's $50k. He wants $70k. So you say I'll pay you $333 a month for 60 months, then I'll pay you a $50k balloon payment. That's $70k.

If he wants at least $375 a month, pay that for 48 months, then the $50k.