How would you do this deal? I found a seller willing to finance.

7 Replies

I found a seller willing to seller finance. Great! I want to do this no money out of pocket.

Should I...….

Use hard money for down payment and rehab?

BRRRR?

What options do I have for Down payment?

Bring in an investor for down and rehab money?

GO!

I'm not a seasoned investor but I would start with making an offer. If you think the house is ARV 275k and she thinks its worth 400k then you're at an impasse (that happens in Seattle a lot since appreciation is so high). I'm also a fan of get the deal first figure out the details later.

I'd find out what terms she's willing to finance also. If the house is fine and just needs a refresh, you have much more options for financing the repairs  than if its condemned etc.

IF she said make an offer then here is my formula for calculating those thing:

ARV ( $275k) x .07 minus the rehab = Price

SO I would offer maximum $142500. 

If they do owner finance , you can offer little more. 

IF she accept the price I quote above, You can go to HML and they will lend everything for you with no money down. Maybe couple thousand on fee.