New York/Dallas/New Haven · Member since 2023 · 1 post · 0 votes
Does anyone have an example of a when they offered a low ball number but also a higher number with seller financing?
Looking at a vacation home/STR property. Current Seller ask price is too high over market, so I'm going to have a low ball offer more in line with market price. Since owner likely has a 3% mortgage from 2021, I'm thinking about also offering an option with a higher price, if seller is willing to finance, since my cost of carry would be at 7% today.
Looking for any guidance on issues or how to structure the offer.
If you're going to ask them to sell to you on owner financing, you need to do the research to determine the remaining balance, the interest rate and how much the house needs in repairs. It's ok to pay a higher price if the existing rate is low enough. Also check what other properties are renting for on Airbnb. Make sure that the seller understands in writing that you are not assuming the existing mortgage, that it will still be in their name and deed will transfer to you at closing. Good luck