2011 BMW 550xi- not running

Posting this for my friend:

Here is my earlier post detailing the issue with the engine:

https://grassrootsmotorsports.com/forum/grm/teach-me-about-bmw-n63-v8-please/180990/page1/

As it sits now it doesn't run and doesn't turn over, it seems seized to me. I heard it run briefly before it completely died and it sounded terrible and was blowing blue smoke. 
He loves the car and is gutted that this happened. The car is in excellent shape inside and out and he is asking $5500 obo. 93k on it. 

Here’s my math on things like that. 

Right now it’s worth MAYBE 5000

New (used) engine (prices from car-part.com) is 3000, if you have a shop buy it for you with a warranty, it will be $4000. install is 2000. So $6,000 to get a new motor in it. 

KBB private party on very good is $9-12,300.

Results:

so as-is he gets probably $4k

OR if he fixes it and sells it in running condition for $11, minus $6k for the install, he nets at least $5k, which is a little more AND moves a TON faster than a parts car.

OORRRRR when he fixes it he gets to -in essence- buy a 2011 BMW 550i xDrive for only $6k (the cost of the repair)

Meanwhile, someone else might pay $4k as-is, then either put $6k into having a new (used) engine installed or $3k for party’s plus time. Best case for someone else is to have it working for $7-10k, which is going to make it harder to justify buying as-is, it’s just not a phenomenal deal.

So in my mind there’s really no financial reason to part with a car with this ratio of repairCost:salePriceWhenRunning. But that’s just the way I see it, YMMV

Or someone has a wrecked car with a good engine, or someone wants to take the time to part it out because everything else is in great condition... several options. 
Thanks for your input, again, I'm posting it for a friend and that's the price he wanted. 

Sorry, I don’t think I came across well. I posted that not so much to talk him/you down in price, but rather for your friend’s benefit in case neither of you have lived that motor replacement life, since I don’t know anything about you or him and your history with cars. I just know that it’s easy to treat a bad motor as the end of the line and wanted to make sure you and he knew it wasn’t *necessarily* the case, especially since you say the loss has gutted him. 

I see snow so maybe north but the terrain/mountains tells me your not in Ohio/Indiana/Michigan. 

In reply to P3PPY :

No worries, thanks for the clarification. At this point he is so disgusted/ dejected that his first reaction was to throw it up for sale. I also think he doesn't want to put an engine in it due to the reputation of the engine. 
I told him to talk to the dealer he brought it to because they knew the engine had a major issue but still had a technician start it to try to bring it up front for him. I'm sure it wouldn't go anywhere but it might be worth a shot. He's also not the type to do an engine swap himself, he has neither the tools or space to do it. The pics of the car are at his in law's house which is where I towed it to. 

In reply to John Welsh :

Upstate NY, a little south of Albany.