How do i do this deal

5 Replies

Okay so a guy is listing for 165k and the area goes for around 230k,

He owes 80k, and just wants out of the house.

How would I go about structuring this deal??

Any Advice would help. Thank you!

There's entire courses put together that addresses exactly what you're asking..  I think you'll be hard pressed to find someone here that'll give you a free "how to" about it.. there's plenty of options though..  Since it sounds like he's a "motivated seller", it'll all come down to real numbers and full due dilligence.  You could purchase the home on a lease option which allows you to do full renovations to the property with contingencies of course that protects the seller and you.. you could get it under contract and wholesale the deal with all your due dilligence offered to another flipper/rehabber.  I guess it depends on your risk tolerance and your available cash..  If those numbers are right, it sounds like a sweet deal.

If you're new, ask to partner with someone familiar with the Ohio area.. I'm assuming that's where the property is based on your profile info..  In Ohio, I'm pretty sure you'll find a lot of folks wanting that deal if the numbers are correct.  Good luck, hope this helps.

This all depends on what you want to do with it. If you plan to make it a rental, see if he will settle for just the 80k and split the profits you make with him. This way you can get into the deal for little money down and it's a win win for both of you.

If he wants out and wants cash, see if he will carry the note for a short while and owner finance so you can flip it. Then pay him off out of the flip proceeds.

If he doesn't want to carry a note, look into wholesaling it and taking the arbitrage.

This is kind of like showing an artist an empty canvas and asking what to put on it. it really depends on what you want, what will work in your area/situation, and so many other variables.