Seller Financing Deal

3 Replies

Greetings all, I came across a deal that caught my attention because the seller is willing to seller finance for the buyer so long they put down a deposit. Details are as follow, duplex with 6 beds 2 baths, 2592sqft, seller listed property as needing only cosmetic repairs but based on the pictures I assessed that both units would need updated kitchens and baths, a fresh coat of paint, new windows. Property is currently vacant but can rent for 800-950/month. The house has been assessed at 74.5k but the seller is selling for 54.9k. I wanted to gain insight as to how to approach this deal with the seller financing option with little to no money of my owned invested in this deal or structuring it with my own funds being used for the down payment and set it up as to where I could cash the seller out after a certain time frame. Also, is there any way to have the seller pay for the repairs needed? Thanks in advance for any insight.

Originally posted by @Marc Cesar :

Greetings all, I came across a deal that caught my attention because the seller is willing to seller finance for the buyer so long they put down a deposit. Details are as follow, duplex with 6 beds 2 baths, 2592sqft, seller listed property as needing only cosmetic repairs but based on the pictures I assessed that both units would need updated kitchens and baths, a fresh coat of paint, new windows. Property is currently vacant but can rent for 800-950/month. The house has been assessed at 74.5k but the seller is selling for 54.9k. I wanted to gain insight as to how to approach this deal with the seller financing option with little to no money of my owned invested in this deal or structuring it with my own funds being used for the down payment and set it up as to where I could cash the seller out after a certain time frame. Also, is there any way to have the seller pay for the repairs needed? Thanks in advance for any insight.

 I am assuming that your information is correct. That being said:

Ask him how little of a down you can give him. 5% down?? Offer him the rest @ 4%, for 30 years with you doing the repairs. Immediate sale, you take care of the repairs no realtor costs. 

Then you Sell each side of the duplex (if zoning will allow), @45k for each side, each buyer comes in with $10,000 and pays on a note of $35k @ 7% for 30 years - no realtor, no bank, no credit check. Since they don't have to get bank financing you will have a crowd of people wanting each side. Sell "as is" and they can make any improvements they want.

Or, you can sell on a lease option same terms but with a 3 year option agreement.

Or. you can rent the units out if zoning doesn't allow selling each side.

@Mike M. this deal is actually listed on the mls brought to me by my realtor so no waybtoo really avoid realtor fees. I guess I also should of mentioned that I wanted to keep this deal as a rental. So how would that work out based on your suggestion? I did think about offering under 10% as DP, let the rental income pay the note and refi out the loan with the seller and cash him out. Would that be a safe way to proceed? Would I or the seller stipulate the rate and duration of the loan?
Originally posted by @Marc Cesar :
@Mike M. this deal is actually listed on the mls brought to me by my realtor so no waybtoo really avoid realtor fees. I guess I also should of mentioned that I wanted to keep this deal as a rental. So how would that work out based on your suggestion? I did think about offering under 10% as DP, let the rental income pay the note and refi out the loan with the seller and cash him out. Would that be a safe way to proceed? Would I or the seller stipulate the rate and duration of the loan?

Realtor has to get paid. Having a realtor complicates matters a lot. The realtor can veto the whole thing with the slightest of phrases like "do you really want to have to have to deal with this for years"? The deal is too unlikely to happen for me to spend more time on it. Sorry.

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