contract or loan? tri Plex

1 Reply

Hello bp. 

Ran into someone wanting to get rid of their tri Plex. It's 2980 square feet total Victorian home 1984 built. updated exterior Windows. my question is how to get this deal, or suggestions on options. 

My real estate agent says home comparables are around 245
Lady wants to get 185k or 175k as is. needs about 3k in updates. woman selling owes 90k. 
I asked if she would mind doing a contract she was very open to anything. Can someone tell me a good way to pursue a owner financing or contract with her? the 3 units are around 775 a unit per month so if I can do it right should be a good deal. 
Thanks for any help.

If realtors aren't involved, it would be a pretty easy owner carry.  If realtors are involved, your down payment just increased 6% and you now have to educate 3 individuals instead of one most likely.

It would have to be a wrap.  Is the existing financing a regular bank?  The NWMLS PSA used here in WA has a standard Method of Payment Addendum that will address the details of a wrap or regular seller carry.  Then you have to decide if you are ok with a Real Estate Contract or Note and Deed of Trust.

I'd get a letter of intent to the seller.  I offer cash cheap, a bit more with owner financing or even more for a master lease option.  See if she likes an option, then draft the PSA or option agreement.  Good luck! 

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