Who's the banker anyway?

For over two weeks I've noticed an ad in my local paper with an owner willing to carry paper on his property, with a deposit. In fact, yesterday's paper indicated that he had dropped his deposit from $3000.00 to $1900.00, incating that he is obviously finding it a little difficult to sell the property even by offering owner financing. Let me reiterate folks that I have no money and my credit is not one to be proud of! I am a firm believer that the worse thing that can happen if we inquire about one's property is that person saying NO to our offers. Thus, I called the owner and more than four times during our conversation, in a nice way, he mentioned that he wouldn't want me to be wasting his time if I knew I didn't have the means to buy his property.

Based on the comps and the appraisal, the house has a current market value of $121,000.00. It is a 3 bdrm, completely brick, 1 ba, detached 2 car garage, nice yard, new roof cost at $5,500.00, brand new central air unit. Laundry room is spacious enough to add a half bath!

Anyway, the owner is willing to sell via two options:

1. Asking $114,000.00 and is willing to carry paper on the amount less the deposit of $1900.00 at 9%. Along with the taxes and the insurance for a year, I would have to come up with a deposit of approx. $3500.00. The monthly mortgage would be $1054.00.

2. Lease option for 13 months of an asking price of $110,000.00. Deposit $2000.00. In this scenario he is willing to drop the interest rate to 7% which would realize a monthly mortgage of $857.00.

The important thing to note here is, and some of you guys might figure it out, this gentleman is a business man; actually he has about 25 properties where several of them are owner financed by him. Since I would be hard pressed to come up with $3500.00 deposit, I immediately started thinking about assigning any possible deal. As a result, I asked him how much he was willing to sell the property if I offered cash money; his answer? $105,000.00. Should I leave this alone? I have six investors who are willing to work with me on possible deals, but all claim that they are looking for properties discounted by at least 35%. Looking at the condition of the property, and it is GOOD because this guy keeps it in emaculate condition, I was thinking about making a cash offer of $90,750.00, 25% of the CMV ($121,000.00). My question is, is that a fair offer and if so are there any investors out there who might be willing to work with a discount as moderate as this? I know I wouldn't make anything substantial on a deal like this, but even $250 would be a nice start for my first ever deal in real estate!

Talk to me people.. lol