I found a seller willing to seller finance. Great! I want to do this no money out of pocket.
Use hard money for down payment and rehab?
What options do I have for Down payment?
Bring in an investor for down and rehab money?
Hi, We would need more information on the deal so we can talk about several option.
ARV is $275k, Rehab is $50k, selling price she said to make an offer.
Is there anything specific I should add?
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.
She agrees on the 275k ARV. The rehab is definitely needed.
Will a HML lend the down, & rehab costs both?
What would be a good offer on the house?
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.
Thanks Tom, My recent experiences is that the 70% rule doesn't work in the market at this time. Sellers are being a bit greedy.