I am approaching my 1 year live-in time for the use of a VA loan and have been searching for the entire year for my next property and may have found it. However, I just started finished all of the work on the place I am living in and dumped a bunch of money into this the previous month and am no where near where I would like to be to jump into a new deal. The deal I have found seems very tangible and cashflows under a "worst-case" scenario. I am willing to share the analysis I have completed with someone for some advice. I am really looking for some more info on structuring a deal that is not on the MLS and I have yet to get Brandon's new book.
My biggest questions:
What categories of finance fall into "Creative Financing"?
How are the contracts drawn up?
What are the functions the title company can provide/is it dependent on capabilities?
If I were to present this to a group, or individual, how in-depth should my delivery be? I feel like it should be as in-depth as possible, but I have yet to teach, present, or sale anyone on anything outside of the military.
Any feedback is greatly appreciated and I hope to contribute as much as possible to BP as others have done for me.
Hey @Tyler Kaye . Are you planning on selling the VA loan house? Will you be house hacking (living in one of the units) of the 4-plex? Options are much more open to you if you plan on living in one of the units is all. Is this in Oak Harbor? I have family in Coupeville.
Plenty falls under the title of creative finance. Most common is seller financing. Here in WA you can structure it as a Note and Deed of Trust or Real Estate Contract. Any title co will have a relationship with a local attorney that can draft the docs for you. The Note and Deed of T is more buyer-friendly. The RE Contract more seller-friendly.
My first offer to sellers (especially off-market) is a simple Letter of Intent that outlines a few scenarios I would be willing to purchase. Broad stroke conversation starters. I don't bog them down with detail. It's a friendly letter.
I won't be walking someone through an entire process or providing contracts. The terms are the important thing. Any title co can follow your instructions. Good luck!
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