Help Strategizing !
Hey Guys! Im well on my way to my first deal in this adventure! I need help strategizing creative financing options to secure this property.
Here are the details :
Home for sale by owner, owners are ready to retire and travel !
The home is in good condition, as far as not needing any major repairs : no foundation, roofing, gutter, electrical or sewer issues that we know. It does need some work to sell in the market today. A perfect fix and flip !
The sellers pretty much want the most money for the home in as-is condition and thinks it's in perfect ready condition.
Ive gathered enough comps to educate the seller on the market value of the home. She wants 700k and that would be close to reasonable if the home were updated.
My strategy is this: I would prefer to do a wholesale because I dont have money to put down on the property. I can work with a contractor to rehab the home and split the profit 50/50, but I'm not sure I would get financing. I would get through a hard money lender in Denver, rehab the home in 3 months or less, sell and take the profit. Only thing is I dont know if the seller would be happy with my wholesale price.
Is is possible to get it financed with hard money, do a deed of trust, do rehab with my contractor as a JV deal, sell the home and take the profits ? I know I'm missing something, hope you guys can help
Hey @Kaleigh Sanchez! Educating seller's that their house is worth less than what they believe is a tough thing to do. Don't try to wrap your brain around convincing them to sell if their number is way off what it's worth. If they want 700k and the ARV is 700k, then you can try any creative strategy you want, but unless it would work as a buy and hold and be a killer deal even at that inflated price, you shoot your shot and walk away when they say no, and move onto the next one. I've completed numerous fix and flips in the area, and a few utilize creative financing. If you want a second pair of eyes, let me know and I can help you figure it out.