Is this possible

[Jason McBride]

I hope this makes sense.
I guess it is a kind of Subject to deal not 100% sure but it is the financing i am curious on. Since i will have to have it written somewhere that i will eventually pay 130k for the property.

A brother and sister inherited a house the sister wants out while the brother wants to hold out for top dollar. He can afford to while she can not. So in terms of creative financing can i offer to have him Either
A. loan me the money at a given interest for 3 yrs then i have to refinance the house. In refinancing i have to get enough to pay him back plus buy him out.
B. Have him take out a loan for a given amount my renters pay the loan off and again i have to refi in 3 yrs paying off the loan and again paying him his share.

Scenario.
A.
Him loan me 65k I pay her 50k as her share and use 15k as rehab money and rainey day money inicase it sits vacant. 3 yrs from now i have to get a loan to pay back the 65k plus an additional 70k for his share since it will be worth more at this point in time.

B.
Asking price $130k
Loan Amount 145k
The house in this market will only appraise for 95k 2 yrs ago it went for 145k so i feel in 3 yrs it will hit 145k or higher so i don't think refinancing would be a problem.
Since they own the house him take out the loan in his name. Can he legally kick me back 15k for renovations or could they each gift me 7.5k

Also would it be best to finance for only 65k pay her off do my renovations and then refi
or just take out the loan in one lump sum.

[Jon Holdman]

Option C: Find another house. You're dealing with an unmotivated seller. That rarely makes for a good deal. His sister being motivated doesn't help since he has control over the situation. Regardless of whatever you do for creative financing he has to agree on a price, and he's not motivated to give you a good price. Next!

For the value to go from $95K now to $145K in three years requires 15% annual appreciation. That's just not going to happen. If this location has hit bottom and is starting to turn around then you might get 3-4% appreciation. That's a best case scenario, IMHO, and requires that your location is in fact turning around. That does appear to be happening in some areas, but a one month change doesn't make a trend.