Creative financing suggestions

[Logan Turner]

Looking for some advice and fresh ideas to make this a deal: 3/2 1500 sq ft home. No comps available (stale market) Owner is willing to do seller financing. Owner owes 44k on mortgage. Value is roughly 120-150k. Would need 10-25k based on drive by and pictures. B- neighborhood What are some creative ways to make this a deal? I was thinking discussing with the seller: reasons for selling, urgency of needing to sell and determining their bottom dollar. But if the seller holds firm on asking price of 130k, what are some creative ways to structure owner financing that can be a win win? I could prob rent this place out for 1200-1400. So I would need monthly payment to be around 600-700 for it to be a deal.

[Logan Turner]

Originally posted by @Brian Gibbons:

@Logan Turner

how did you get 44,000 owed? We're kind of first mortgage is it, is it FHA, VA, conventional ?

Try getting 50% of market rent for payment on Equity payments 

Explain why you need 50% of rent collected to the seller

 With current first mortgage is in place I like doing subject to the existing financing purchases with the note no payments for five years 

 What is the payment on the 44,000 ?

 What is the sellers motivation to sell ?

Does he need the money today or can he take a note?

This business is about low all cash OR creditive deal with payments that can help you as a re investor feel comfortable about the risk

You could also look at Wrap around mortgages depending on the existing financing for an acquisition strategy

Hey Brian, thanks for the reply. 

I looked up the deed on the property. The house was bought in 1999 but a mortgage was taken (HELOC perhaps) out on the home in 2013 for 44k. So perhaps its around 42 k owed. Just guessing based on public record. But, not sure the type of loan it is. I have not negotiated with the seller yet, and was trying to get my ducks in a row before i did, so i am not thrown any curveballs.

Not sure yet motivation to sell, other than listing it to sell in a slow market. I will find out if motivated or just perusing, but very few homes are selling and tons are sitting on the market for months. 

Would the wrap around be: he still carries the mortgage of 44k, but we add to that (for example) a 60k mortgage that I'm going to pay? Basically I'm paying the 100k total mortgage but 44k is in his/her name and 60 k is in my name? Only draw back i see, is I am a 1099 employee (anesthesia business) but i have a credit score of 720-755 and a high income but not 2 years of tax returns, so no one wants to loan (except hard money)

And thanks Brian again for the tips and advice. Very much appreciated!