Creative Financing Ideas on SFH

6 Replies

Hi  BP Team,

Please provide any inputs or ideas with the scenario below:

Seller wants out of the home to pay down Credit Card and various debt (motivations) 

Her SFH is currently selling for $204K in the Tacoma, WA area. Seller Owes 165K.

No HOA / Taxes approx $2400/yr & Seller willing to deal without Realtors involvement.

Property rents for $1500 $1600. 

My goal is to create a win - win situation since we are long-term friends. Thanks BP

If you don't have an agent involved, how do you know the value from a distance? Zillow and other online estimates can be off by quite a bit. Are you wanting to wholesale the home or rent it out yourself?

@Isaac Hobbs I've used a couple of different resources that provide a competitive Comparative Market Analysis other than Zillow. Not down degrading agent's assessments, but thier evaluations can be off by quite a bit also...from my experience anyways. 

I will be renting it out myself for passive income. If you have any information about creative financing, please do share. Thank you. 

It's not hard to find comps... by looking at recent sales. 

But... since your friend has to live somewhere, what about buying it then leasing it to her? That way she gets the money, you get the house. But you better be ready to act like a real landlord and go past the friend aspect... if not don't rent to her. Or if you do, do it for a short time (like to get you out of winter).

Yep well agents and their level of service can vary a ton. If it's in decent condition and you're getting it for less than market value, why would you need creative financing since there's equity? Talk to @Albert Bui if you want more info on lending. 

Originally posted by @Tavares L. :

Hi  BP Team,

Please provide any inputs or ideas with the scenario below:

Seller wants out of the home to pay down Credit Card and various debt (motivations) 

Her SFH is currently selling for $204K in the Tacoma, WA area. Seller Owes 165K.

No HOA / Taxes approx $2400/yr & Seller willing to deal without Realtors involvement.

Property rents for $1500 $1600. 

My goal is to create a win - win situation since we are long-term friends. Thanks BP

Have you considered conventional financing strategies ?

What are the condition of the property?

How much is the debt she wants to pay?

Can you assume her mortgage? 

Option 1:

Conventional financing 

Option 2: 

Hard Money, Renovate, Rent out, Refinance with higher rent

Option 3:

Seller Finance (give her the money she needs to pay her debt as a down payment and pay the rest in payments). You can then refinance later on to conventional.

By the way, I don't have a experience financing but that's what I have currently been focusing on learning. We like to see other people inputs.