Help with Creative Financing!!
Hello Bigger Pockets!
I need some advice on a creative financing scenario. My family member is about to lose her house to a short sale. The house needs work but would be a great fix and flip. She has it listed for $160k. My mom owns a house around the corner that is appraised at $330k. Same house but my cousins needs a $60k- $80k rehab. The recently sold comps in the area range between $345-$430k.
My question to the bigger pockets community is about creative financing. I want to work out a deal with my cousin to give her some moving money ($15k-$20k) assume the mortgage, Rehab it, and sell. What would be my best options to make this happen with little to no money out of pocket? I have a contractor that will partner with me on the Rehab and cost of the Rehab. But I need to know what steps do I take to make this happen. Should I go to the realtor (which I am friends with) and try to negotiate a better price with the bank or offer my cousin the money to sign over the deed to me and bring the balloon payment ($25k) up to date, then renovate and sell. Any advice would be helpful Bigger Pockets community. Thanking you all in advance.
PS... I already own a LLC that I created for flipping but have not used it yet..