Found a seller that’s free and clear.
Found a seller that owns a 4 unit free and clear. He responded to one of my direct mail letters. I’m already under contract for another house, but this seems like a great opportunity to get a house with seller financing.
What benefits could I explain to the seller if he were to owner finance the house with? I figure he’ll save a ton in realtor fees and capitol gains, but what else? I’ve run some numbers, and he seems to have a price in mind around 475k. I think that’s a bit much when I looked at sold houses in the area and figure I would offer 400k, but the owners interest is what I don’t know how to negotiate. Is there a set rate? 4% could work for me but if I go higher than that, I begin to loose cash flow in the property. Just trying to get creative with my financing options since my capitol is tied up in the house I have under contract and I feel like this could be a great cash flowing property.