Wholesale owner finance

[Shawn Duncan]

I was wondering if i could get some feedback on structuring a good owner finance deal. I have a seller who owes 95k on a home that has an ARV of 170k. The home is needing about 8k in work. I plan to wholesale the home to an end buyer. My question is, if the seller does not accept my cash offer, how could i structure an owner financed offer that would make sense for the home owner as well for the end buyer?

What terms and downpayment would make sense for you as a buyer looking for a rental or potential flip?

[Derek Dombeck]

Shawn

One structure you could pursue would be a sandwich lease option. 

You first lease option the property from the seller and then you sign a second lease option with your end buyer.  Make sure your option period with the original seller is longer than the option you are giving to your end buyer. Ideally, you would want a larger down payment from your end buyer than your paying to the seller so you can make a spread upfront.

Happy Investing

Derek Dombeck