I have a property under contract for $103,900, I have a lender who already agreed to lend me 70% and I am trying to borrow another $42,500 to complete the purchase and rehab of the property. My exit strategy would be to sell the property just under market value at $150,000. Terms for the loan that I would agree on would be 8% interest only for 9 months and a balloon payment of $52,500. Does this sound attractive enough to entice an investor? or should I try and partner with someone and split the profits from the resale? Any suggestions on how I can get this deal done?
Why not ask the seller to finance the 42k for nine months? Many sellers are happy to partially finance a sale if they don’t have to wait too long to get all their money. Nine months is hardly a long time in most instances, especially if the seller is receiving the bulk of his money now. I always ask the seller to finance all, or part, of the transaction. So, ask for it.