Where do you start with negotiating?

[yveskleinsky]

I am looking at writing up an offer (different property than the cash at closing one) and the owner is willing to finance. He wants me to go first as far stating terms. I have never done owner financing before and am unsure of how to frame my offer without insulting the guy. I was thinking of starting at offering full price ($85k) with 5% down, at 5% over 30. Any thoughts?

 

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[AroundTheWorld]

I say go for it...

It is a starting point, and if he doesn't like it, he will show you what he would like.

I personally would never loan out money at 5% - but he might surprise you.

I recently asked for an owner carryback at 7% on a commercial property.

They accepted - I never thought they would.

So.... ask for what you want!

 

[Jason_MI]

My first thoughts would be:

1. What do you WANT?
2. What do you NEED?


Write those numbers down, then we can start talking about what your offer might look like; having a 'range' makes things a little easier for both of you; you don't give away the bank and shortchange yourself, and also help to meet what they're looking for.