I have a property the i can assume with nothing out of pocket or money to owner
she just need to stay for 3 months will give property to me for $75,000 it is worth $130000. how do i put this deal togather and get cash out. please help me first time have about 5 more after this one. ???

assuming the numbers are correct -

just draw up a contract - maybe like a sale and leaseback???

she can sell it to you - no money down and you rent it back to her for 3 months for some nominal consideration.

she’ll hold the note - you can take possession of the property - fee simple - meaning total control of the property in three months after she moves out.

you can then refinance for 80% LTV (104,000) - pay her off and put 29,000 or so in your pocket tax free…


what do you do with the property? rent it? live in it?

what is your exit strategy (purpose of the purchase).

thank you for the advice now do i go through the process like i am actually buying the house. like find a title company an everything

first things first - WHAT IS YOUR EXIT STRATEGY.

WHAT IS your plan for the purchasing of this piece of real estate?

it all begins with this question.

forget title searches right now.

and don’t say, “i’m going to refinance it and rent it…blah blah blah.”

look at the numbers, look at the rents, the rehab market, the market overall, and come up with a plan of exactly what you’re going to do with the property.

from there, you’ll start a more in depth analysis of the property, the seller and the property situation.

as you’re getting that nailed down - you’ll look at YOURSELF.

what funds do you have available? how much risk can you take? who can help you?

all the above will give you a good idea of how to make the best offer that works for YOU AND THE SELLER.



if you’re totally new to all this - don’t worry so much about title insurance, appraisals - talk to a real estate attorney and a CPA about legal/money stuff.

if you want to do this and not fart around in neverinvestland - then follow 1 - 5.

be HONEST in the 1 - 4.

realize the implications of your findings in 1 - 4 that lead to 5.


if you don’t have a CPA - call some, ask friends and family for referrals.

call a few real estate agents.

you don’t need to know all about title companies and appraisers, inspectors and all that - your RE attorney will set u all up with this - the contracts and all that - a good RE attorney will have this down pat - and make sure they’re a REAL ESTATE ATTORNEY.

if they don’t know investing - call the next RE attorney on your list.

how will you know they know about REI?

just ask them how familiar they are with seller financing or purchase money mortgages, month to month leases, etc.

if they look at you funny or laugh it off, say “thank you. have a nice day.” find an attorney who does. a few good real estate agents might have preferred attorneys they work with or have worked with in the past.

join your local rei club.

good luck!!!


You also need to take into account that you may have to hold the property for a few months for seasoning until you cash-out. You did not mention credit scores but there are very few lenders who will allow for immediate cash-out and you need to have good credit. How long will she hold the note for? Is there a balloon payment at the end of the note. Also, how do you know what the property is really worth?