Best Strategy: Seller owns free and clear

[Brandon Eleazer]

I received a potential lead in the following situation:
Seller owns property A (free and clear)
Seller wants to sell property A to pay down principle on property B (mortgage)
Property A is in move in condition, single family home

The seller doesn't want to be a landlord, so lease option is not possible. Since the property is in good condition wholesaling is also unlikely. As an investor I would like to see if the seller would sell to me via owner financing. However as a Realtor I could list the property for sale to earn commission.

The obvious choice is to buy and hold if possible, but the seller really just wants the most money she can get. I already disclosed that in the event I bought the house I would be renting it out. What more information do I need to help make this decision? Given the scenario, how would the owner note be structured?

Any suggestions? All opinions are welcome, thanks.

[Brian Gibbons]

Free and clear owners have worries and concerns. Find out what they want.

Tell the owner you will give a cash offer and a terms offer.

You need to listen to what he wants.

I like private first mortgages at no interest.

Say $100K house.

Offer $88K cash or $110K owner carry, no interest, 15 year note 180 payments.

If you are more than 60 days late, they get the deed back.

I like paying more than they want for free and clear houses with no interest.

In 15 years you have a free and clear asset.

Brian