question on owner finance property with rehab

2 Replies

Howdy folks,

I have a FSBO who is interested in owner finance.

ARV $135k

asking $85k

estimated repairs $30k 

owner owns the property free and clear

I can brrrr this property, i already have funding lined up.  The question is: is there a creative way to utilize her willingness to owner finance to get the property cheaper and through interest payments over time get her close to her $85k number?  And how does one go about funding the rehab if i went the owner finance route?  

I have run these numbers many different ways and trying to rehab with as little of my money as possible is eluding me.  Maybe i'm standing too close to the forest.  Thoughts?


Hi @Jason Schooley ,

See how long the seller is willing to accept interest-only payments, start with 2 years. If they agree, you can practically operate the property as your own and without having to find a large chunk of cash for the downpayment.

It all starts with asking, the worst they do is say 'no.'

How did owner financing come up? Did you bring it up? How did you bring it up? This is all information that tells you how to proceed.

What do you mean you have funding lined up? 

Are you going to move right in? 

How long will it take you to rehab the property?

How long do you plan on staying in the property? Then what are you going to do with it?

These questions and more will tell you how to construct an offer. 

If you make offers that scare them, they can shut down and list it with a realtor. You need to make sure they are going to understand what you are offering them. Just because they said they are interested in owner financing does not mean they understand what that means.