Creative Owner Financing

5 Replies

I need some help coming up with a creative owner financing deal. Here are the details:

Purchase Price $165

Down Payment : 10k

Projected Rent: $1300

ARV: 200k

Would you do this deal? If so, how would you structure the financing?

@Daniel Pitner I am interested In what people have to say about this on here. I had something almost identical accept a smaller purchase price (and I don't know how to calculate ARV ) and I had a friend that told me not to jump. And there was an I rented garage apartment on them.

@Daniel Pitner

Too little of information. What’s your expenses? What’s the neighborhood like, are people moving into the area? What’s you’re strategy, flip or B&H?

Originally posted by @Daniel Pitner :

I would highly encourage you to use the bigger pockets BRRR calculator

This will require a whole lot more homework and research for you to conduct.

1- How much do you estimate the repairs will be?

2-How much will insurance be on the property once  please complete 

3-What is the property tax on the property

5-You can use 10% for property maintenance if you don't manage it yourself 5% for monthly maintenance and 5% for Cap X as a general rule.

Once you complete the BRRR calculator please share the results I'll be interested to see what you discover

@Daniel Pitner "Would you do this deal"
-- We need way more information.  The most important information missing is about you.  We know nothing about you, your goals, your experience, your income/reserves.

"how would you structure the financing?"
-- Does the owner own the property free and clear?  Is the owner aware of what seller financing is?  Are you looking to get a traditional mortgage using $10k of your money + $32k from the owner to cover the 25% down payment?  Are you trying to get a lease purchase and then sell the house on a lease option?

You're about 856 words away from sharing with us enough information to adequately guide you in the right direction.