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

Stoddard Storage Units
Updated Buyer Terms

The buyer restructured the offer to put more cash at closing, shorten the timeline, and keep the back-end simple. Here's exactly what's on the table.

★ Revised Proposal — 2-Year Balloon
A Note From the Buyer

I structured these to increase the amount of cash at closing while also shortening the timeline and keeping things simple on the back end.

In addition, structuring part of the sale this way could allow him to spread out the tax impact over time rather than taking it all in one year, while still receiving consistent income on the balance.

Of course, everything would be handled through a reputable title company with proper documentation in place to ensure everything is fully secured and straightforward for him.

At the same time, based on the current NOI and where rents sit today, getting up into the $2.7M range would put the deal at a cap rate that just doesn't pencil on my end without relying heavily on future appreciation or major changes to the property. I want to be upfront about that so we're not spinning wheels if we're too far apart.

That said, I do want to find a way to make something work if he's open to it. If he has flexibility on structure or wants to explore different combinations of price and terms, I'm more than willing to keep working through it.

Appreciate you guys working with me on this and happy to continue the conversation.

▲ More Cash
Bigger Down Payment
$300K / $200K at closing — up from prior $200K / $100K.
◆ Faster Exit
2-Year Balloon
Pulled in from 3 years. You're cashed out sooner.
■ Tax Smoothing
Installment Treatment
Spread the tax impact over multiple years vs. a single-year hit.
Option One

The Higher Down

$300K at closing · Lower carry balance

Purchase Price
$1,850,000
~7.0% Cap Rate
Down Payment $300,000
Seller Carry $1,550,000
Interest Rate 4.5%
Year 1 Interest Only
Year 2 25-yr Amortization
Balloon Month 24
What You Receive Over 2 Years
Down Payment (closing)$300,000
Year 1 interest-only ($5,813/mo)$69,750
Year 2 P&I ($8,615/mo)$103,385
Balloon payoff at month 24$1,515,663
Total Received $1,988,798
Option Two

The Higher Price

$2M top-line · Bigger total dollars

Purchase Price
$2,000,000
~6.5% Cap Rate
Down Payment $200,000
Seller Carry $1,800,000
Interest Rate 4.5%
Year 1 Interest Only
Year 2 25-yr Amortization
Balloon Month 24
What You Receive Over 2 Years
Down Payment (closing)$200,000
Year 1 interest-only ($6,750/mo)$81,000
Year 2 P&I ($10,005/mo)$120,060
Balloon payoff at month 24$1,760,124
Total Received $2,161,184

The Bottom Line

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

Option 1 · $1.85M
$1,988,798
Total over 2 years
vs.
Option 2 · $2.0M
$2,161,184
Total over 2 years
Option 2 Delivers More
+$172,386
over the two-year hold — but with $100K less down and a larger balloon at month 24.

How to Think About It

Option 1 favors you when…

You want the strongest cash position at closing — $300,000 in hand on day one, plus a smaller note to carry ($1.55M vs $1.80M).

The buyer has meaningful skin in the game from the start. A smaller balloon ($1.52M) is easier for the buyer to refinance at month 24, which lowers the risk that the loan comes back to you.

Best fit if your priority is de-risking the carry and getting maximum cash up front.

Option 2 favors you when…

You're prioritizing the top-line price and the biggest total dollar amount over the two years — roughly $172K more than Option 1.

You're comfortable carrying a larger note ($1.80M) and a larger balloon ($1.76M) at month 24, knowing the property's cash flow supports the higher payment.

Best fit if you want the highest reported sale price on record and the larger income stream during the carry period.