3 Unit For Sale by Owner-How to talk to seller

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Hello BP!! I'm very excited about this post because I have come across a 3 unit building FSBO that would be a great addition to my rental portfolio. What I am stuck on right now is how to talk with the seller and asking the right questions so we could do a seller financing deal. I've had a few properties that came up in the past that were great candidates for seller financing but I believe that I wasn't asking the right questions because it always came back to what it seemed as the seller not understanding the financing and them wanting to end the conversation rather quickly. Can you guys help me out on how to approach the seller and the right questions to ask so they don't become afraid of the idea right away?

I would approach it from a tax perspective. If he is free and clear on the properties from a financing perspective, he probably stands to take a pretty big tax hit on the profits. He can minimize his capital gains if he spreads the payments out over a number of years (plus he'll collect the interest on holding the note). Capital gains add to your adjusted gross income, which could very well push him into a different tax bracket by recognizing them all in the same year.

The whole argument of seller financing sort of presumes they don't have a great need for the cash up front.  If that is the case, the tax arguments are pretty strong.  So the first question that has to be answered, either directly or indirectly is, "What do you plan to do with the proceeds of the sale?"  If he is going to do additional purchases (ie. spend the money) - he will likely have little interest in seller financing.