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Updated almost 10 years ago on . Most recent reply

User Stats

34
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12
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Justin Louie
  • San Mateo, CA
12
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34
Posts

Seller-Financing Hybrid Strategies

Justin Louie
  • San Mateo, CA
Posted

I recently started a forum topic about getting advice on starting out.

http://www.biggerpockets.com/forums/12/topics/2066...

You can find that post here.

As I was reading some responses, i was wondering if this strategy is something someone has done before and if it is even a valid idea. I know I am a beginner and new to real estate. Therefore, this may be a stupid question or idea. If it is, please let me know. 

I know that laws differ across the country, but it is possible to acquire a property via seller financing and then say after a few years, you want to "exit." Can one exit via another seller-financing arrangement? I think I am envisioning almost like a lease-option sandwich sort of idea. Where the monthly payment you agree to sell the property for is higher than what you're paying monthly to the original owner? You could make the difference on that spread, but since seller-financing tends to have more potential for flexibility in terms, I could see that you could get a property. If this is possible, I could see how netting a positive cash flow on a property you don't own anymore can help. You would be able to help the original owner by ensuring they get their monthly income and not rack up a huge tax bill on a sale. One could then use the down from the second sale to leverage into bigger and better income property. 

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