Owner Financing to Owner Financing - Head Spinning
Hey BP fam! I'm trying to put a deal together that I hope looks simpler to y'all than it does to me. I keep trying to put pen to paper and figure out both sides of the equation and I keep ending up frustrated. Here's the deal:
My JV partner and I have been managing a property whose owner now wants to sell it to us. She's agreed to a great sale price - just over 70% of its appraised value in a warmer than average market - but she insists on owner financing. I don't have a problem with that, but we were interested in acquiring the property specifically so we could write a lease option contract or something similar with the current long-term tenants, who have had trouble qualifying for financing but who want to buy the property. Those tenants have agreed to buy at 100% of appraised value if we can be more flexible about the time frame of their eventual purchase. She (the current owner) agreed to sell to us instead and let us deal with them because we can deliver a down payment immediately and she wants to move on to a new town ASAP.
It's possible I'm just not getting my head around it, but all those conditions make it sound like this deal is basically-
She owner finances to us while we owner finance to them and I can't figure out how to structure that so that everybody (I mean especially us, but still everybody) wins.
Please take pity on my poor tired brain. Don't want to freeload. Would be happy to stuff envelopes or do a little bit of whatever remote work I could do for your business in return.
Thanks, BP!
-Ryan