creative financing new to lease options please help!

hello - i’m new to the investment world and have a property in california that is currently owner occupied. the bank is listing the home for $51k, i want to buy it and rent it back to the owner but i don’t want to use traditional lending and hard money lenders are asking how they will get their money back after one year. how would lease options work for me, or would they?

i want to keep my capital and use it for repairs - my goal is to use creative financing but i’m justs not sure how to structure it or how to approach the bank since the property is now in thier hands.

any suggestions

A lease option will probably not work here. You have to deal with the bank,. If it is a local bank, then go and talk to them and negotiate a loan on the property with no money down and you will fix up with your money. This is a long shot but worth a try. If you have a tenant under lease and money to put into the deal they might go for it. If it is a larger bank and you have to go through a Realtor,you will most likely be required to come up with cash to buy it. Banks are not friendly to creative financing, thats what got them into this mess.

redhawk is correct, unfortunately. Banks and creative thinking don’t go hand in hand. They want that toxic asset off their books. And that means a cash buyer. So if you want to buy this property, your best bet is to get the cash, (hard money?), and make a low ball offer to the lender. Then, when you do buy the property, think long and hard about renting it to the current homeowner. If he couldn’t pay the bank, what makes you think he’ll be paying you?