How to structure a creative purchase..would love some thoughts

2 Replies

I am currently looking at a property that falls into my portfolio in respect to location, property and potential ROI. The owner needs to sell because he manages remotely and he is tired of dealing with it.

Unfortunately,  I have maxed out my ability to take on loans for Realestate based on the number of properties that I have and conventional lending and I don't have the 20% at to put down if I did find a loan.

I offered the owner a potential Owner Finance options with a good down payment, balloon payment and higher than market interest rate.  He said he really can't do that because of his debt position with the property.  He did say he would consider having me assume his note and take over ( I don't have the details on this yet).

Has anyone been in a similar situation and positioned a  different creative option?   

I am looking for any ideas I can evaluate and present to this seller to make this work for both of us.  

I hope this is a clear request but I will be happy to answer any questions to help come  up with options based on what I know.

Thank you!

For a creative deal you need to know the existing financing exactly, payment, who has note a fixed-rate or ARM, why seller is selling, etc

Tools to use: subject to, lease option, wrap mortgage, etc.

@Marwan Marzagao how many financed properties do you have?  Did you know that you can do up to 10 financed properties with conventional financing?  And did you know you can put as little as 15% down if it's a 1-unit property with conventional financing?  I just did a topic about overlays, you may be interested to read it.

Let me know if you have any questions, happy to help.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here