Buying Property Strategy

4 Replies

Hi,

I have been asked if I would be interested in the following strategy to have properties in my portfolio. I am looking for advice how to go about doing this.

Someone I know wants to purchase a property with a mortgage, fix it and sell it to me leaving me with a cash flowing property. We are thinking I would then get a mortgage and he would do a seller finance for the down payment. He is also looking to have money in his pocket after selling me the property to do it all over again. I would think this is something that other investors do. I know there are a lot of holes here that we need to fill to make sure we can do something like this smoothly. Any advice would be greatly appreciated.

Thank you

Jon

Sounds like a great way to get ahead with nothing out of pocket!

Just make sure the numbers work out in your advantage when it comes to the cash flow aspect.

I need more friends like that!

Good luck!

Steve

Originally posted by @Jonathan Emery :
Hi,

I have been asked if I would be interested in the following strategy to have properties in my portfolio. I am looking for advice how to go about doing this.

Someone I know wants to purchase a property with a mortgage, fix it and sell it to me leaving me with a cash flowing property. We are thinking I would then get a mortgage and he would do a seller finance for the down payment. He is also looking to have money in his pocket after selling me the property to do it all over again. I would think this is something that other investors do. I know there are a lot of holes here that we need to fill to make sure we can do something like this smoothly. Any advice would be greatly appreciated.

Thank you

Jon

So he gets a mortgage and fixes up, then you buy cash and then refi? Then he buys it back from you seller finance? So you are stuck with the mortgage and he goes and finds another "you" to do this again?

Couldn't you do this without him and cut out the middle man?

@John Horner @Steve Baldwin

Thanks for the replies

The idea is for him to buy the property at a great price, fix it up and get it rented and sell to me so I have a cash flowing property. We are thinking I can buy it from him by getting a mortgage. He does seller financing to cover the down payment and would still have some to move on to the next property and do it all over again. We are trying to create a win win for the both of us. He get makes some profit and continues to do more. I get a property that cashflows and get more.

@John Horner

@Steve Baldwin

Thanks for the replies

The idea is for him to buy the property at a great price, fix it up and get it rented and sell to me so I have a cash flowing property. We are thinking I can buy it from him by getting a mortgage. He does seller financing to cover the down payment and would still have some to move on to the next property and do it all over again. We are trying to create a win win for the both of us. He get makes some profit and continues to do more. I get a property that cashflows and get more.

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