Creative way around NOO 20% Down?

Question

There is an off market 2 unit property in Chicago selling for 65K that appraises for around 140K.  I have a NOO buyer for the property at the appraised price of 140K, but of course he has to come to the table with 20% down.  Buyer is pre-approved for well over 140K from the bank because he  has excellent credit, good income, with 6+ months reserves, <45 DTI,  but does not have  the 28K to get the deal done.

Is there a creative way for me to sell this thing to my buyer with him not having to come to the table with the 20%?  My buyer's bank won't accept seller financing on a second to cover the 20%...

I have a source for the down payment, but the funds have to come from the borrower (my buyer).  Not sure how to make money on this deal...

Mike Knowles · Answer

Actually, I may be interested in something like this.  Send me an email if you want to discuss.

J. Gary · Answer

Excellent idea.  I'll try to find some note guys on the forum.

Mike Knowles · Answer

Assuming your numbers are all square, one of the Note guys on the forum may be interested in helping put this together.   Someone could buy the property w/ cash, give you a wholesale fee, then carry back the note to your Buyer.

J. Gary · Answer

Appreciate all the help, guys.  They might have about 10,000.  Are you suggesting me buying it from the seller on seller financing using a contract for deed, and flipping it to my buyer for the 140,000?  Also, what's a down stroke?

Carlos Flores · Answer

How much does the buyer have for a down payment?  Can you get it for ~$65k with seller financing?  If so, buy it and sell it on a wrap to your buyer for $140k.  You could do a double close (and possibly not tie up any of your money depending on the state).  If it were me, I wouldn't care what I walked away with at closing as long as I wasn't in the hole.  Actually, I might even invest a few bucks to take down a $70k income stream.  BTW, don't forget he also has 6 months reserves (require 3 and have him up the down stroke).

J. Gary · Answer

I thought about building myself into the HUD, but I've been told that the end buyer's bank will not allow that.

Steve Babiak · Answer

Sounds like you're wholesaling this.  How do you expect to collect your wholesaling fee from a non-cash buyer?