Primary Residence Partnership

[Kwanza P.]

I found a home in the Bay Area (California) that I love. It’s old but it’s close to where I live currently and to my family. I’m not originally from California so it’s important to me to be close to the community I’ve managed to build up.

While I was approved for a loan that would cover the purchase price of the home, I worry about being at the very top of my budget. 

The original owner of the home passed away and the home is now owned by a trust that I expect her children are the beneficiaries of.

Again, the house is old. Built in the 1930s and while it is charming, the preliminary inspection shows a lot of work that needs to be done. On the positive, besides the property's cuteness, it is on a large lot with enough space for a detached ADU. Maybe even for a 2BR ADU!

I was thinking, perhaps the seller would be open to me making an offer much below the asking price, in exchange for a percentage of the ARV or equity after repairs and me adding the addition ?

Does this sound wacco? Open to hearing other creative ideas or pros and cons of what I’ve proposed above. 

Thank !

Kwanza

[Kay S.]

I have heard Tony Robinson talk about how he sometimes gives the seller a few options to choose from - one with higher purchase price and seller financing ( just as example) one with lower purchase price with traditional financing etc. you might consider a couple options that would work for you and see which is most appealing to them. Also, it's helpful if you can find out more about their motivation for selling to understand  what type of offer would appeal. (If they just want the cash asap then seller financing would not work. ) Hope this helps and good luck!