A gutted owner financed.

5 Replies

Hello BiggerPockets forums, I need help on a couple of these questions if you have any tips or advice please help don't hesitate to comment or suggest a method on this. So I'm going to reach out to a possible owner financed property, I've seen inside the property already it's a two bedroom full house offstreet parking. Now I want to obtain the property to live in but there's a dilemma. He started gutting already and also it's not much work new floors, new cabinets so on so forth. We're looking at about 10-15k in repairs. So what are some tips to approach the owner with a owner finance contract? Also how would I be able to financially support updating what he had gutting. So please anything helps .
Originally posted by @Ray Agosto :
Hello BiggerPockets forums, I need help on a couple of these questions if you have any tips or advice please help don't hesitate to comment or suggest a method on this.

So I'm going to reach out to a possible owner financed property, I've seen inside the property already it's a two bedroom full house offstreet parking. Now I want to obtain the property to live in but there's a dilemma. He started gutting already and also it's not much work new floors, new cabinets so on so forth. We're looking at about 10-15k in repairs.

So what are some tips to approach the owner with a owner finance contract? Also how would I be able to financially support updating what he had gutting. So please anything helps .

 You knock on the door while he is there and introduce yourself. Ask him if he would consider you buying the house "as is" and you would do all of the rehab. Then ask if he would consider owner financing. (However, if he is gutting the house, he is probably wanting to "flip" the property and has already done all of the up front calculations and financing based on that. So, don't be surprised if he says "no" but there is no harm in asking and he might know of someone who has a property and type of financing you are interested in.

@Mike S. I am aware that it could be possible flip. I know for sure he selling it due to the for sale by owner sign in the window I reached out to him a couple months before he even put that sign up he said he was going to just update it for a college rental. But I spoke to him on a regular basis or by weekly and he said he ran into other properties that were more prioritize than this one. If I approach them on the owner finance aspect of it, how would I pay for the rehab is what I'm trying to ask?

Is it possible if I do owner finance take out a personal loan of some sort and then put that into a mortgage if that makes sense?

Originally posted by @Ray Agosto :

Mike S. I am aware that it could be possible flip. I know for sure he selling it due to the for sale by owner sign in the window I reached out to him a couple months before he even put that sign up he said he was going to just update it for a college rental. But I spoke to him on a regular basis or by weekly and he said he ran into other properties that were more prioritize than this one. If I approach them on the owner finance aspect of it, how would I pay for the rehab is what I'm trying to ask?

Is it possible if I do owner finance take out a personal loan of some sort and then put that into a mortgage if that makes sense?

If this is your first flip, there are all kinds of costs you aren't aware of. You could find a family "investor", do a "joint venture", a 401k, credit cards, there are a bunch of ways but you've got to figure out how much you need. It would be an eye opener for you to go through the process to determine costs even if youdon't end up buying this one.

@Mike S. Now to fully Tackle the cost, do you have any tips and tricks? As in how would I be able to break down what I need to pay for how I need to pay for such a such are in better words just how to price everything that needs to be fixed had and also how to determine what needs to be fixed?

Originally posted by @Ray Agosto :

Mike S. Now to fully Tackle the cost, do you have any tips and tricks? As in how would I be able to break down what I need to pay for how I need to pay for such a such are in better words just how to price everything that needs to be fixed had and also how to determine what needs to be fixed?

 Team up with someone who has some experience.

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