How do I structure my first deal?
I don't want to put any money down, but I'm not sure how to structure it. For the cash, I need your reference for a hard money lender. Here are the underlying facts:
1. It is a blanket loan, which means that all three properties have one single closing cost.
2. They owe 110,000 and their asking price is 117,000. However, they are in the final stages of foreclosure, are divorcing, and need a quick sale.
3. Their current payments are 1,223.77 PITI.
4. One is rented for $575. The tenant has been there for years. The other two have market rents of $525 and $550.
5. The comp value (based on nearby sales) is $160-$170 for all three.
6. No major repairs are needed.
My goal is to assume their loan, or offer them seller financing, and then re-fi immediately after closing. Because it is november, it would be hard to sell so I plan on holding them as rentals/lease option. They have found a tenant for 1 property at $525 and I plan to lease option the second. How do I structure this deal?
Thanks!