Rental Property Investor · New Castle, DE · Member since 2016 · 376 posts · 158 votes
Hello BP! I'm working on a creative financed deal. It's a SF 4br/1 full bth / 2 half baths. The owner is willing to sell for $32k, but wants me to put down $20k and he'll finance the $12k. He'll deliver it with a clear title as he owes on a loan against the property (not sure how much). ARV is $130k-$140k and it only needs about $20-25k worth of work (or less). I've given him the option of Subject To and at 1st he was receptive but is now back to wanting to do the seller-financed deal. He was apprehensive at first because he felt it was one-sided in his favor. Does anyone have some good tips to help me persuade him into doing a subject to? I thought about increasing the offer price to sweeten the deal. I don't want to put that much down as I have a duplex that I'm interested in buying in the next month or two. Any insight is welcomed!
Part of me is totally excited for you and the other half scared beyond belief. As multi-year if not decade Attorney, I can see all the right and wrong things that can happen here.
My advice here is to not rush, get everything in writing and do not make rash decisions, buy most of all get well counseled.
I am sure there will me tons of advice coming your way on BP, just make sure to validate everything and make the right decision for you. There are tons of advisors out there, just spend some time finding the right ones. Best of luck! Please keep us updated.
@KB Collins Thank you for both being excited and scared along with responding LOL I've spoken to a real estate attorney who will draft the paperwork per our terms for the seller financing option. He was very chatty and I appreciated his perspective and clarification on what I'm trying to do. I'll reach out to him again to discuss the Subject To option and see what his insight is. I'll also have to check what others may have said on BP to get some clarity on how to approach things. I've been working on this deal since last August and the duplex since December. They just so happen to be ready at the same time and I don't want to lose either deal. I realize that what God has for me is for me alone so if it's meant to be, IT'S MEANT TO BE!!!
@Cassandra Sifford A Chatty Lawyer... We must be related LOL... I am so glad you read between the lines and got an advisor and and advocate. Please make sure you keep us informed.
@KB Collins The owner and I are still trying to get to the closing table. We're now possibly venturing into a partnership to buy a land bank property next door to his rental! I would be acting as boots on the ground and the project manager and he'll finance the deal. He's about an hour and a half away from the properties, but still wants to invest in the city. Hopefully we can come to terms soon as the weather is changing. I've always heard finding good tenants in the colder months is a challenge.