Possible seller finance

[Matt Schaum]

I have a single family house under contact for 60K. The house needs 100K rehab roughly. I have cash for the home purchase and some of the rehab, but not all. I explored hard money lenders and they need 10% down, 3 points, and interest only for the life of the loan(3-6 months). This is my first flip so I do have and history to shown the lender. I do have a rental property that cash flows $400 a month. I reached out to the seller and offered them 80K after rehab at settlement on the flip. They have expressed interest. Has anyone ever done a deal like this? What should I be looking out for, and what would the paperwork look like? Is it worth paying the additional 20K to free up my rehab money? Comps after rehab seem to be at 220K-250K. I won’t be making a killing on the flip but still profitable. Any ideas? Any advise is greatly appreciated.

[Warren Smith]

Start with asking what the seller needs.  Some down? more at sale as you are suggesting?  find a way to make it a deal that benefits both of you.  Terms are always flexible, and if you can find their values and address them, they may be more willing to make it feasible for you.