the white stuff on the chain is belray chain wax..its good stuff just not pretty... the bike looks ridden hard and put away wet but it does have some good parts on it..i just dont get why its rolling on the stock wheels..but anyways i would drop him an offer for 2.8k flat and see if he bites..the motor and frame look stock (no gussets) check for cracks.. also run a compression test on it and if it doest start on 2nd kick prepare to walk away from it once the auto decomp gets messed up on those its a real head ache unless your willing re-shimming the head (valves, cam, ect) the 05 previous has a decomp adjust which makes it easier