Updated over 7 years ago on . Most recent reply
I don't pay for my houses!
Hello guys and gals,
So I started investing roughly 6 months ago by buying a 3/1 SFR for $52,500 here in my hometown and thought I had stolen it from the seller, because I got them to pay half of all costs. The truth was that I had done an ok job on that deal, but the best was yet to come. My next deal was a 3/1 SFR that had been on the market for awhile, so I decided to offer on it and this is where I found my strategy. Asking price was $55,000 and when all was said and done we settled on $50,000, but the stipulation that I insisted on was that the seller pay every dime of closing costs and MY down payment! They agreed and I only ended up financing roughly $42,500 on it. This does not only work on houses that have been on market forever, I have done this on 3 of my rentals, which were fairly new listings. A tip that I will leave here is that if the seller is hesitant or says that they need a certain amount of money out of the house then you can adjust the sell price up so that they net out what they need plus all costs are covered. Obviously you will want to make sure not to go to high as to not make it a good deal for yourself. Have a great weekend everyone!
Justin
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- Real Estate Broker
- Cody, WY
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I think some of you are thinking this is a seller carry-back but I see it as something different.
Asking price was $55,000. Buyer offered $50,000 but required Seller to pay the downpayment and closing costs.
Basically, the Buyer bought the home for $42,500. The Buyer increased the price so the Seller would have more money which he then gives back to the Buyer as the downpayment. It's a money shuffle and I'm not sure every lender would allow it.
- Nathan Gesner
