Hello! My first post. A friend came upon a good opportunity to buy a house, and she decided to flip it. I would like to buy it. There are three of us investors, both of them do not want to keep it. I understand, but I want to keep it. Are there any strategies I could use to keep it? The sale price would be around $800,000. We are almost done with the flip. we got a hard money loan and each of us put in 30,000. My credit isn't great. Any ideas would be welcomed. Not sure if this is the best place to post this.
Open an LLC with someone else who has good credit and make them an offer or work out an inside deal where the remaining partners do a seller financing deal, but if there is a mortgage you can't. The Hard Money loan has to be paid off and then I'm sure the partners will want their capital back and their profit at closing.
The sale is 800k, if you wanted to get 80% financing on a purchase then that's a loan amount of 640k. You'd need 160k toward the purchase and likely 175k or more to close. But to carry a loan of 640k, you'd need the market rent to come in at 6,000/month. That's a a lot. If it comes in say 4,000/month then your loan amount will have to decrease and your cash to close goes up.
I wouldn't fall in love with the house. Make your money and get out.