Idea's on how to do this deal!

Financing, Hard Money Lenders, Private Money
1

Hello,

I’ve come across a great deal in my area (Oregon) and was wondering if I could get any input on how to structure the deal. My current residence is way upside down and I cannot sell it. I found a new property that I would like to buy, and then rent out my current home. However, I don’t know how to get financing on the new home, while still in ownership of my existing home.

The property I am looking at buying is two parcels, one with a 5,000 sf home and one vacant. There is also a cell tower on the property that brings in $500 per month. The neighbor to the south has offered to purchase the vacant lot from me for $80,000 as soon as I close the deal. He is unable to buy the lot now, as it is a foreclosure and the bank will only sell the entire thing. Total purchase price will be $350,000.

I’m trying to find a way to finance the $350,000, less the $80k that I would be getting from the neighbor. So, is there a way for me to finance $270,000 and use the $80k from the neighbor as my down payment? I would owner occupy the home and one lot and the value of this part would be around $450k with some minor rehab.

Any thoughts on how to structure something like this, and how to go about getting it financed?

2

Thinking waaay outside the box here…

If the neighbor loaned you the $80k, would that fix your current mortgage into the black and market ready?
You might be able to line up another investor/buyer to take your home off your hands first, then do the loan with the neighbor and sell your house to the investor/buyer, so you could use your house funds to acquire this property and then give the lot to the neighbor. Of course you’d need an agreement with the bank holding the foreclosure property, on a contingency based on the sale of your home for the deal to close. And a contract with the neighbor.

…I’m just winging it.