I live in Calif. and I recently made an offer to an owner in Georgia. This was my first time negotiating so I was a litter afraid but went forward with my offer. I set my price and included a “subject to existing financing”…the owner counter offer with a price and wanted me to pay for all closing costs. I accepted her counter-offer and asked that the owner take back a second as the down payment. The owner declined my offer.
My question: is it uncommon to ask an owner to take back a second for the down payment?
The reason for selling is the key question I like to get answered right off the bat. If they need money for another deal or to pay bills then you know what the need is. I bought a house once where the seller had to have $25K to pay the IRS within 15 days or face stiff penalties. The house was free and clear and he wanted a total of $50K for the brand new house he had built which was his cost. I got a loan for $35K and pocked $10K and he carried back a $25K second mortgage.
The answer is yes sellers will often finance part of the purchase price but rare to finance all where you will have zero down especially on a sub2 deal. If you have a really great deal here you may be able to get a new loan with zero down possible with a combination of the new loan and some seller financing or some other creative financing. I have borrower from private investors at high rates when there is cash flow and good leverage.
I did ask the question why the property was being sold and I was told she recently got a divorce and wanted to sell the property. I didn’t think to ask questions regarding what her needs were. Will do better on my next offer.