Creative Finance is possible

I’ve been around here for awhile, but mostly reading and learning.
I recently had a breakthrough, and want to share the details, in the hope that it will help / encourage others.
My wife and I fell in love with a large house on a 50 acre lot. It’s too soon for us to think about a house like that (OO), but it was our dream home, so we decided to see what we could do to get it.
Up to this point we have 2 rentals, both SFH, and our OO. The 50 acre property had been on the market for over a year and the owners had moved out of town. The asking price was $900,000. Here was the offer:
$400,000 conventional financed 30 year fixed
$500,000 owner carry back with deffered principle AND interest payments for 1 year from date of settlement.

We would keep both rentals, turn the current OO into a rental and do a HELOC on it for the closing / down. All this was lender approved and ready to go.

My agent just about laughed herself to death when I told her this structure - but it was presented properly.
She was laughing even harder when she called the next day to say the offer was accepted!
In the end, we didn’t go through with it, because my wife is having a very problematic pregnancy, and we were afraid for her health and the stress of moving and the new huge debt.
BUT - I felt really great about being able to creativly structure a deal and have it accepted - it’s not ALL guru BS!

We have since gone back to buying SFH starter homes in the area.

Much luck to all.

Morals of the story:

  • “You’ll never know unless you ask”

  • “The only offer a seller will NEVER accept is the one that is never made”

You never know what the seller might or might not do…maybe they want to defer a large amount of Capital Gains – they can do this to some extent with an owner finance…or maybe they don’t really need the cash right now and you can structure the deal to pay them over time with a decent return…