Smith Robinson · Real Estate Two70
Confidential · Prepared for the Seller
Owner Finance Comparison

Stoddard Storage Units
Two Offers, Side by Side

A straightforward look at both soft offers — headline price, monthly cash flow, and what actually lands in your pocket over the three-year hold.

Option One

The Higher Down

More cash up front · Stronger rate

Purchase Price
$1,700,000
~7.9–8.0% Cap Rate
Down Payment $200,000
Seller Carry $1,500,000
Interest Rate 5.5%
Year 1 Interest Only
Years 2–3 25-yr Amortization
Balloon Month 36
What You Receive Over 3 Years
Down Payment (closing)$200,000
Year 1 interest-only ($6,875/mo)$82,500
Years 2–3 P&I ($9,211/mo)$221,072
Balloon payoff at month 36$1,440,871
Total Received $1,944,443
Option Two

The Higher Price

Less down · Lower rate · Bigger price tag

Purchase Price
$1,850,000
~7.2% Cap Rate
Down Payment $100,000
Seller Carry $1,750,000
Interest Rate 4.5%
Year 1 Interest Only
Years 2–3 25-yr Amortization
Balloon Month 36
What You Receive Over 3 Years
Down Payment (closing)$100,000
Year 1 interest-only ($6,563/mo)$78,750
Years 2–3 P&I ($9,727/mo)$233,450
Balloon payoff at month 36$1,670,683
Total Received $2,082,883

The Bottom Line

Three years out, here's what each offer actually puts in your pocket.

Option 1 · $1.7M
$1,944,443
Total over 3 years
vs.
Option 2 · $1.85M
$2,082,883
Total over 3 years
Option 2 Delivers More
+$138,440
over the three-year hold — but with $100K less down and a larger balloon to refinance.

How to Think About It

Option 1 favors you when…

You want more cash at closing ($200K vs $100K) and the strongest possible position if the buyer can't refinance at month 36.

The buyer has more skin in the game from day one. A smaller balloon ($1.44M) is easier to refinance, lowering the risk that the loan comes back to you.

The higher interest rate (5.5%) means your carry is working harder for you each month.

Option 2 favors you when…

You're prioritizing the top-line price and the biggest total dollar amount over the three years — about $138K more than Option 1.

You're comfortable carrying a larger note ($1.75M) and a larger balloon ($1.67M) at month 36.

The lower rate (4.5%) helps the buyer cash-flow the property, which reduces default risk — but you're earning less interest along the way.