Looking for structuring ideas

[Frank Harrington]

So I came upon a property. Easy ARV in L.A. neighborhood is roughly 750k. I can get property for 450k.

I don't want to put any money down. What is the best way to structure this so that I can get a good refinance loan in 6 months once I have fixed the property up? Should I have the owner carry the note for 6 months, or at least carry a 2nd for 20% of sales price so I could use conventional lending? Will the seller carrying the full note for the 6 months even count for traditional lenders now as far as seasoning goes? It used to be 6 months from sale would be good enough (30 years ago).

I could go hard money, but I would want to watch the pre-pay penalty, points and interest.

I will most likely hold onto the property for 2 years as residence if I don't use hard money.

[Ken M.]

Quote from @Frank Harrington:

So I came upon a property. Easy ARV in L.A. neighborhood is roughly 750k. I can get property for 450k.

I don't want to put any money down. What is the best way to structure this so that I can get a good refinance loan in 6 months once I have fixed the property up? Should I have the owner carry the note for 6 months, or at least carry a 2nd for 20% of sales price so I could use conventional lending? Will the seller carrying the full note for the 6 months even count for traditional lenders now as far as seasoning goes? It used to be 6 months from sale would be good enough (30 years ago).

I could go hard money, but I would want to watch the pre-pay penalty, points and interest.

I will most likely hold onto the property for 2 years as residence if I don't use hard money.

If you can get a proper, legal, contract with owner financing and make the payments (seasoning lengths vary by lender, 6 to 12 months) and get proof of making the payments on time, (cancelled checks, bank statements) the lender will probably accept that part of the qualifying process. There are of course other requirements.