A real estate negotiator breaks down a financing standoff on a $12 million deal. The seller offered two incompatible options, so the negotiator proposed a third: the seller carries $8 million at 0.5% interest with a balloon payment, creating what he calls a win-win-win where both sides feel fairly treated.
Are you ready to run this deal? We sent over an LOI and the LOI was that the owner, the seller, wanted to give us an opportunity to owner finance it. But we gave them two options. Option A was no money down, 5% interest only payments, 2 years, and a balloon payment of $12 million at the end. Option B was $4 million upfront, no, no interest payments until the end of 24 months. And he assumed we were going to pay him 5% interest only at that time. And I was like, no. Like you don't get chicken and egg at the same time, right? You get a wet— you either get a wet chicken or a dry chicken. I don't care which one, but you don't get both. So when, when we negotiated that, I said, okay, so for the option B, if we give them $4 million down, like we're going to not have any monthly holding costs. But I'm also not interested in giving him $1.1 million on the flip. So I was like, you know, no, we want you to do is like carry the $8 million, give you the balloon, but then you're going to go 0.5% interest. Flat, like $8,000. And they're like, oh, we don't know if we like that. I don't care. Like, I'm not interested in what you like. I want it to be a win-win-win. And if you want it to be a win— a bigger winner win— that's not going to work, right? Because we can still win with the payment
