Offer Failed, On To Seller Financing… Need Help!

[Brandon Kargol]

Okay so here's my situation… I have a lead I made an offer on which was refused (not surprised). Here's the numbers.

ARV: $125,000

Repairs: $20,000

Seller Asking Price: $85,000

Seller Owes: $76,000

My Offer(which was refused): $52,500

I don't see anyway to wholesale this property as the seller owes about 60% ARV before 20K in repairs, but the seller is VERY motivated to sell and is willing to do seller financing for the cost of the existing loan. My question is this, i'm not the most familiar with "subject to" deals. Can someone enlighten me on turning this situation into a good deal? I know it can be done.

Thanks in Advance!