So, I presented a deal that will allow me to purchase an invest property through seller financing with me putting up 5k cash. The seller will finance for 2 years with a ballon payment at the end or I will have to have refinanced by then. I buy and hold but have never had the opportunity to put property in my LLC. This deal will allow me to finally do that. Potential rent for property is 1k or more. Investment property(IP) price is 35k minor rehab of 5k or less. A renter can be in place in 30 -45 days.
I think it is a great deal and it establishes a relationship with the seller for future deals like this.
Or do I go the traditional route and get bank financing in my personal name.
Who sells a home from their personal portfolio for $35k that rents for $1k or more???????
Even if they are offering OF and you put it in your LLC, when its time to refi out your lender wont do the loan in your LLC so you might as well just finance it now if you are able.
I am establishing an S corp.
This is what the deal looks like:
1. Sale price 35,900.00
2. Down payment 10,000.00 (We can discuss this amount)
Financed 25,900.00 @ 7% monthly payment 5 yr term 1 1/2 year balloon =
$431.00 principal and $151.08 interest total $582.08 a month
The balloon means in 1 1/2 years you need to do one of the following to the balance 1. Refinance 2. Payoff 3. Refinance our terms. I would prefer #1 or #2 as I do not want to hold debt.
This would be in writing and a mortgage would be put on the property.
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