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Creative Real Estate Financing

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Jeff Lundeen
  • Specialist
  • Salt Lake City, UT
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How does this 3-different options offer look? (seller financing)

Jeff Lundeen
  • Specialist
  • Salt Lake City, UT
Posted Feb 15 2024, 18:31

I recall someone talking about sending multiple with different terms.  Here's what I created in an attempt to get either a lower price or better payment terms with seller financing.

Background:  This is an international property in a Country that it's fairly common to ask for payments.  The payments typically are 1-3 years (but there's no real standard) and don't have additional interest added.

Asking price: $280 Million (different currency than USD)
Last year's asking price $250 Million (we assume the price increase is because of inflation)

The owner doesn't seem in a hurry to sell and when we asked if he'd negotiate last year at $250 million he said no.

I'd like to offer the following 3 options to see if any of these work for him:

Option 1: 
250 Million upfront 

Option 2:
140 Million upfront
130 Million in 6 months. (Total of 270 million)

Option 3:
140 Million upfront
70 Million in 6 months
70 million in 12 months (total 280 Million)

My wife and I like all 3 options.  Just looking for feedback on if this is something you'd do.  (I figure worse he can do is say no and then we're in the same place as we are now).  The goal here is to make Option 3 (his asking price) look more appetizing.  But we'd also be happy with option 1 or 2.

Thanks for reading!

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