Podcast 303 – How to Choose between Cash or Term Offers?

Michael Quarles covers whether or not you should choose between cash or term offers, and more… Seller thinks as is condition is around 75k. Based on recent sales in the area, I think it could appraise around 80k-85k. The average sale price in the area is $69,700 and the county assessment is $63,900.  Based on the pictures of the interior and the exterior condition, the house doesn’t look it needs hardly any work, if any at all. We drove past the house also and the exterior of the house is very well maintained. I would like to keep this as a rental if possible.Seller wanted 69k as her lowest offer and she is willing to do seller financing. She wants full payment in 5 years and 5% interest OR she is willing to go down to $64,500 if we pay cash. She is getting rent for $1000 a month. She said the tenant has been there for 7 years and has never been late and pays on time every month. Taxes and Insurance is roughly $212.55, I factored in $100 for property management fees, and $150 total for vacancy, capital expenditures, and repairs. Her one objection is she has done seller financing before and had difficulties with getting payment on time so she wants to know how we would handle this.  I don’t know where to go from here to make this deal work for me. I was playing around with the idea of paying cash and then getting someone to finance a mortgage for me or doing the seller financing for her terms. I am unsure how to figure out a balloon payment in 5 years with 5% interest though. We would like a cash flow of $200 a month but don’t want any less than $100 per month. I was gathering that she would prefer to have the cash and be done with it but she is open to options. More Podcasts! Listen to More Podcasts by Michael Quarles! – Click Here Listen to Recorded Live Seller Calls! – Click Here Listen to Interviews with Today’s Top Business Professionals! – Click Here Tweetable   How to Choose between Cash or Term Offers CLICK TO TWEET     Join Michael Quarles’ Gold Coaching Program CLICK TO TWEET     Text Investor to 313131 CLICK TO TWEET   Share the Show Did you enjoy the show? We would love it if you subscribed today and left us a 5-star review! Click this link – The Michael Quarles Real Estate Show Click on the ‘Subscribe’ button below the artwork Go to the ‘Ratings and Reviews’ section Click on ‘Write a Review’ Resources Please send questions you would like Michael Quarles to answer to [email protected] and he will answer them on one of his upcoming podcasts! Looking To Grow Your Real Estate Investing Business? Join My Gold Coaching Program Yellow Letters – www.YellowLetters.com Want to be held Accountable to your GOALS? – Text the word WEALTH to the number 313131 Want to Learn from Michael Quarles? – Text the word INVESTOR to the number 313131