I have an investor that owns 12 properties free and clear and is willing to do owner finance. He wants about 10% down on each for security. That comes to about $72K. All properties except one have renters so finding tenant-buyers to cover the downpayment is out. Does anyone have any recommendations on how else to finance this deal?
Hello, Have you considered a Hard Money Lender?
yes, I have considered a HML. However, I want to keep the properties for rentals so I don’t want to pay high interest rates. My credit is not all that great either so conventional is unlikely. Do hard money lenders do long-term loans? If so, what is the typical interest rate?
The answer is simple and right in front of you think about it for a few where can I come up with 72k down for this!
12 properties at say 800 each a month because that is only 720k divided by 12 so that means they are all worth 66k or so 800x12=9,600 72k divided by 9,600 =7.5 let him keep the rent for 7.5 months ok 7 and 1/2 months!
Try this see what he thinks!
Hello, Reoconsultants is right. Try to make a deal with the owner. Use an HML as a last resort because the interest could be high (12-18%) depending on the project. Terms vary depending on the lender.