Hoping to get some input on how I should set this deal up in Texas:
1. Seller holds property in his LLC and is refinancing to his personal name so he can refinance house (according to him)
2. I am buying property that has about $5000 in equity -its a turn key property in good neighborhood that I will buy and hold and will cash flow $150 per month.
3. Seller wants to do a lease option which I am not interested in.
4. Seller wants 10% down 7 % interest.
What is the best creative financing tool to use and why and what should my concerns be to protect myself.
Thank you in advance for any assistance anyone can offer!
@Melissa Haworth , looks like the seller has all the advantage - and knows it!
Are you saying: "10% down 7 % interest" would get you $150/m net cash flow?
And, does $150/m work for you, as a good return on a 10% deposit?
Have you taken all ongoing expenses (including vacancy, cap ex, management) into account?
If to be "creative", you're required to pay too much, I recommend - look elsewhere! Good luck...
Who is the investor? I dont think it is you in this situation. You are going to find deals when you find people who NEED to get out of their house, not from investors who are asking for 10% down.
@Melissa Haworth It's unlikely that his lender is going to let him hold title in his LLC and refinance in his personal name.
I took the advise of peers and opted out of the contract thank you.
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