(Buyer here) Seller Financing proposition from me - Is this too crazy?
I Am brand new to the rental property world, I have $150,000 down and there is an opportunity in front of me that is an off the market listing there is a nine unit apartment building for sale for $750,000, and a 64 unit apartment building for sale for $4 million dollars. Where I'm brand new to this and I don't have quite a lot of money down, I was wondering if my seller financing proposition is just a dream or if it is realistic.
My proposition is:
Offer $2.83 million for both properties with a 15% interest rate on a 15-year note that would yield the seller $6 million total over that time period with prepayment being prohibited. For both properties they want $4,750,000 - they are already selling these at a loss as the family wants to get out of rental properties. And I feel like I could propose this as a way to hedge against tax liability.
Please provide your thoughts and any insight for a new investor into this world I greatly appreciate it.