Hi everyone, I'm new to BP and this is my first post.
I'm working on a triplex deal in Southwestern PA and I'm working with the property owner and leaning towards seller financing.
Once all renovations are done, and I have tenants in could I refinance, pay off the existing loan the owner has and have the property be mine?
I'd like to do this so that I'm safe from the seller defaulting on the loan & any other pit falls.
@Vincent Filia What are the terms of the deal?...sounds like the seller still has a lien on the property...so, no purchase money mortgage, but you could look to alternative options to control the property if the numbers work. We'd need more info to make an informed response.
@Brandon Sturgill thank you for replying so quick!
Anyways, I may be making this more complicated in my head than it is. Let’s say the owner has home equity loan with xyz bank. He wants to sell his property to me but right now I don’t have the capital. He is offering seller finance which on the surface is he will charge me $X per month and Once renovations are complete I can collect rent from the 2 units above the seller.
I guess I’m just curious what the best way to do this would be? Secondly, once the renovations are complete could I refinance in my name and effectively pay off the balance of his Home equity loan and cash out whatever the remaining balance is, if any?
Hello @Vincent Filia ! If you're from Southwestern, PA you may want to look into a portfolio lender like S&T bank. If you have a legal document clearly stating possession through the seller financing note (and they will confirm outstanding balance with owner), when you go to refinance they have an 80% LTV 10 yr ARM/30 yr amortization for a LLC. Depending on the appraisal and the outstanding balance owed to the original owner you could walk out of closing without having to bring any money to the table or better yet, walking away with money in your hand.
@Travis Wylie thank you so much for that! Very helpful
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