Does This Investment Make Sense?
Recently I posted on Craigslist asking people to email me if they are interested in buying a house with seller financing. The sole reason for the post was to simply start to build a list of potential buyers.
I was contacted by a lady who has good income but she cannot get a loan because it's 1099 income. Seems normal so far. She proceeds to ask me if there would be a way for me to assist her in acquiring an REO home. She's willing to pay at least 50k for it and the bank has in for sale for just above 40k.
My question is, how can I make this happen? I don't have any capital built up so I can't get it with cash or a traditional loan on my own. Could I acquire the house by borrowing the 20% from a family member, then turn around and do seller financing to the individual? I know I need to have paperwork all along the way to cover me. The individual has a large down payment, 15k+. That alone would pay back the money I borrowed for the 20% down.
Does this make sense or should I stop wasting my time and energy trying to figure out how to make it work?
Thanks all in advance, I love this group.