Hi guys, I am new to creative financing. Can you please be so kind and help me out? I was trying to buy a property and the seller owes to the bank 35K in mortgage. I don't have the 35K to put down on it. I have about 10k to put down. The purchase price is 55 k... Seller does not want to do sellers financing because she owes 35K to the bank for mortgage.The property does need some updating, it needs new roof (10K) and new siding (5K) How would you structure this deal? The purchase price is 55 k... Seller does not want to do sellers financing because she owes 35K to the bank for mortgage.The property does need some updating, it needs new roof (10K) and new siding (5K) How would you structure this deal? Seller does not want to do sellers financing because she owes 35K to the bank for mortgage. The property does need some updating, it needs new roof (10K) and new siding (5K) How would you structure this deal? Thank you!

@Mary Jay, I think an equity partner or HML are the best routes. You may have an additional problem: it can be difficult to get a loan for such a small amount. So, a partner that can help fund the whole thing in cash or HML, where you'd likely only have to come up with 15% of the purchase price. If your numbers are accurate, this will work very well as a BRRRR.

Thank you so much for your reply! ARV is probably anywhere from 120-150K Planning to buy and hold It would rent for about 2K per month...Cash flow will be about $600-800 permonth Its an out of state, so I cant move in there...

@Mary Jay, • What's the ARV? • Are you planning to flip or BRRRR? • What would it rent for? You can explore either bringing in an equity partner or using a low-down payment, FHA-type loan and owner occupying for a year while you do the repairs.

Updated over 6 years ago on 05/23/2019. Most recent reply

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Mary JayPoster

Glendale, AZ

Creative Real Estate Financing

How to structure this deal?

Mary JayPoster

Glendale, AZ

Posted May 22, 2019 12:06

Hi guys, I am new to creative financing. Can you please be so kind and help me out? I was trying to buy a property and the seller owes to the bank 35K in mortgage. I don't have the 35K to put down on it. I have about 10k to put down. The purchase price is 55 k... Seller does not want to do sellers financing because she owes 35K to the bank for mortgage. The property does need some updating, it needs new roof (10K) and new siding (5K) How would you structure this deal? Thank you!

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