So i'm seeing the owner of a property that is priced at $1,045,000. He's willing to owner finance it but after going through comps with my RE agent partner, the house wouldn't get any action unless its in the high $870Ks to low $900Ks. The seller is already selling it at a loss as he bought it in 2009 for $1,120,000. The house is free and clear. There is about $50,000 in repairs that need to be done but he is including a $50,000 "gift certificate" to cover those repairs, which is pretty sweet.
I definately know I can make a profit fromt his home when I put a buyer in it, but how can I convince him to go down below $1M? Hes already retired and a monthly cash flow for him will work for him. I just dont know how to suggest lowering the price even more. Any advice?
Is there interest on the payments? Show him the future value. Will be well over a million even though the principal amount is less than a million.
He was actually interested in doing a 2nd mortgage financing method. To be honest, I didn't really understand. But on his last home, he sold it with seller financing, the buyer brought in a down payment and partial first mortgage and then the seller financed the remaining purchase price. But there was collateral on the buyer in case of default, which was a piece of his business. And it worked out. So I'm looking into structuring something like that. No interest was brought up.