Im looking for an example on how this type of creative purchase plays out. I guess i kinda get it but im still in the grey with the actual structure and layout.
The seller only owes $80K asking $300K rmv $270K he will participate in the financing if it make sence. Seller wants 25k cash at close. My due dilligence shows the home is in a growing area, and would support itself as a rental/ l/o if i can deffer part of the price. My exit plan is to deffer a portion of the purchsase price for 3-5 years then sell.
Well, you’d have to take over his loan at 80K, give him 25K at closing, and he must hold the rest of it as a seller carry back mortgage at a very very good monthly payment.
But please don’t be overpaying for this property, no reason to.
Thanks for the feedback, alot of people reading not alot of feedback. Im hoping to make him an offer in the next couple days so im just trying to figure out an offer that is a win/win. Heres a little more of the scenario to help with ideas, for an offer.
This guys wife and family are already moved out of state for her job, and hes paying on both homes. Hes in the home now waiting for an offer ,trying to sell on his own. So his motivation is big and growing each day he sits in the home. I dont feel the home is worth what hes asking so my goal is to get him to around $230 TO $250k for it to pencile out.
If not deffering the price any other creative way to buy this place?
Well, this post has been here for a few days now and not alot of responses, so im guessing this is not a way to buy for investors?
Has anyone ever used this deffer a portion of the sales price to buy real estste. If so can you give some insight as how it worked for you?
Does this creative way to purchase make any sence at all?
It might work.
What is your total monthly payment going to be?
What sort of interest can you get the owner carry for?
What have you budgeted for taxes, insurance, vacancy, repairs, management, and maintainance?
What will the house rent for?
What do you realistically think the house will sell for at exit time?
Could you be getting a better return elsewhere with less risk?