Updated about 4 years ago on . Most recent reply
First Seller Financed deal
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $90,000
Cash invested: $5,000
Seller financed deal of an essentially turnkey property. Cashflow is very modest, but seller agreed to $5,000 down, had a great experience purchasing via seller financing. 30 year rate with a 2 year balloon. Current comps in the area are around 100-120 k plan on holding this and refinancing out the seller in 18 months
What made you interested in investing in this type of deal?
I've never done a seller financed deal, the amount the seller wanted as down payment was very low
How did you find this deal and how did you negotiate it?
Purchased it from my mentor
How did you finance this deal?
Cash, Seller financing
How did you add value to the deal?
Turnkey property
What was the outcome?
Rented at $950 a month. Cash flowing, no issues with property/maintenance
Lessons learned? Challenges?
I should have negotiated terms more. It's a 2 year term, and something more likely 4 years would have been much more conservative
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Just escrow agents, and me and the seller @sammylyon