Updated 12 months ago on . Most recent reply
Rent to Own, creative financing
I'm trying to figure out best way to have as little money come out of my pocket as possible. Here is the deal:
I am in a rent to own situation for an investment property. (I'm also a real estate agent)
In 1 year from now I have option to buy the property for the existing loan ($376,000 in one year) plus $45,000 directly to the seller. I will need to get a loan on the property and given it's an investment (will not owner occupy) I'll need 80% down. I'm fairly confident the home would appraise for $470,000 - $490,000 in October 2025.
Options? Make purchase price $475,000, lender gives me $380,000. Seller would only need additional $41,000 leaving space of $54,000 between my offer price and what seller gets. I will be paying ALL closing costs, can the seller just give me an incentive for that $54,000 or is that in some way fraud for inflating a price? This would only leave me with $41,000 to bring to closing + closing fees
Just make purchase price $421,000 loan would only be $336,000. I would then need to bring $85,000 + closing fees to closing which seems like the worst case scenario
Is there an option I'm missing???
Current loan on property is not assumable.