Updated over 10 years ago on . Most recent reply
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Creative Financing Seller "Refi" for Takeover
#1 BiggerPockets Exclusive PRO Area Contributor
- Professional Auctioneer
- Baltimore, MD
Seller “Refi” for Takeover
This no-money-down technique is as amazing as it is simple. Ask the seller to refinance the property for your offered price, (for 30 years fixed at no more than X%) subject to a one-time qualified assumption by you. Take over their loan at closing. The seller walks with cash, and you buy with no money down!
If a seller has equity in the property and has been unable to sell it, ask him to get a loan on it, let all parties know that once the property is refinanced, you are going to assume the mortgage with a release of liability for the owner.
An alternative; the seller pulls as much cash out of the property from a refinance as he can and the investor takes title subject to the new existing financing.
The seller has the cash and the investors has the property.
Another alternative ---- ask the seller to give you X$ for repairs at time of settlement.
Another alternative --- agree to give the seller a Hybrid bonus once the property is sold....10- 20 - 30%.
The hybrid usually works when a seller is accepting less than what he wants and the informal partnerships works great.
Charles