Attractive Seller Financing Terms

[Daniel Kramer]

There is a brick triplex around the corner from my primary residence, great location and curb appeal. Out of curiosity, I looked up the public records and discovered the owner has had it since at least 1992, so he likely owns it outright or very close. I am planning to write a letter to his mailing address as a friendly introduction and asking him to keep me in mind if he ever wants to sell. Getting way too ahead of myself, I think it would be a great opportunity for seller financing. Obviously, I want to build a relationship first, but if you were the seller, what terms or structure of seller financing would convince you to go that "riskier" route as opposed to taking the cash from a bank financed deal? Also, assume you're approaching retirement. How much down, how long, interest rate, etc.

Thanks!

[Steve Vaughan]

Most of my tired old landlords like 10% down at 6-7% interest. Closer to 7% probably now that conventional rates have risen.

Most don't want a balloon, but 2 did at yr 5.  But I also provided references of other locals I bought from this way.

You are smart to just send a letter of introduction for now.  The best seller financed deal is one that's 'their idea'.  Listen. Ask questions. Be humble and reluctant. Good luck!