Second Offer

ARV = 375k

Asking: 349k, flexible - said they’d take 325k (a month ago)

Current mortgage amount - 0

My offer:


Seller to hold a note to be paid in 6 months for 285,000 with 0% interest.

Realtor to hold note for 6 months at 0% interest (8550).

My plan for property:
Roof Repair - $2500
Paint Job - $ 500 (Interior)
Siding - $3500
Rugs &
Small add-ons $1000

Total Cost: $7500

Taxes monthly $660 monthly
Home Owners $110 monthly

Holding Period: 3 Months

7500 (repairs) - paid by seller
330 (home owners) - paid by seller
5000 (closing costs) - paid by seller

Total out of pocket money - 0

Is this doable?

So at closing, seller will give me $10,000 and pay closing costs (5000).

I will make repairs and sell it - pay seller off.

If worse comes to worse, i’ll refinance it for 80% LTV (300k) - interest only loan - , pay off seller and aggressively market house to sell.

I think it will move quick…

Now, how the hell do i sell this to seller?

Tear it to shreds.


Let me get this straight. You bring no cash to the deal, you basically want the seller to sign the house over to you, pay for you to fix it and then hope they get their money in 6 months? And if they have to foreclose on you and get the house back, they’re out 15k or more. And you’ve also never done this before right?

Looking at it from the other side, can you answer why wouldn’t they just keep it on the market for 6 months and wait for a higher offer?

I’ve had deals fall apart when buyers/sellers were 10k apart over a 350k deal and the buyer had 10% down with no contingencies. Basically you’ve got a very shaky deal there. All I can say is good luck.

they can wait another 6 months or 12 months or whatever. pay the 8000 in taxes for the year while they live in FL. While the place continues to wear. that’s no sweat off my back.

they can find another buyer sure. they’re not going to get a higher price, if they do, more power to them. the place needs 30k in repairs (if it were all contracted out).

they are lazy people who have let their house go and don’t live here for a number of personal reasons.

and, if they were to foreclose on me, cuz i didn’t pay them, they’d get the 15 back and then some, because the house will have gotten the repairs.

and the 5000 for closing costs would be recouped when they sold it at a higher price, if they were to foreclose on me.

but, that’s not going to happen.

i have well over 700 credit score.

business has over 25k in liquid (that’s a lot to these people)

and i can get references from previous customers from a previous business, to back my character.

yes, i think they’ll consider it. where will they get 15k? i have no idea…maybe they can borrow it from me for a discount on the purchase price of 1%?



So what’s the problem with you getting a regular one year ARM mortgage? No realtor is going to want to wait 6 months to get paid, they’re supposed to get paid after the closing.

You can also get rehab loans, they’re somewhat similar to construction loans. Sounds like you’re just making the deal a little too complicated. If you don’t like paying closing costs, you just have to make a lower offer with more conventional financing. Good luck.