I have an elderly woman who is motivated to sell her property that she inherited from her father who recently passed. The property only needs 10K in repairs as it is in very good shape - only bathroom needs to be remodeled and living room ceiling patching. The asking price is $50K with an ARV of $80K. I currently have it under contract but struggling to find a buyer as comps are pretty difficult to come by based on the market. I am looking to recommend the seller financing option to the seller as we have built great rapport. I've also come by potential buyers interested in financing this as well but it's my first deal so wasn't sure I wanted to use a creative strategy but now I am. Would I need to get the seller to agree to restructure the contract with the or can I keep it the as is and focus on the contract with buyer ? How exactly would my assignment fee work? Would I get paid off of the down payment agreement with the buyer? Apologies for all the questions, but wanted to ensure I am clear on what I have researched before reaching back out to the seller as I do think she would be willing. Her motivation is to move away and enjoy her beach house 4 hours from the property.
Any assistance would very much appreciated. Thank you!
If she agrees to the owner financing option you can add an addendum to the contract saying that buyer may also owner finance with the following terms (years, interest rate, down payment). That way you don't have to do a whole new contract.
You add your assignment fee to your buyer's down payment. So if you want $5K and she wants $10K ask for $15K down.
Find a seasoned investor in your area to sit down with you and guide you, maybe go to a local REI meeting? Considering this would be your first transaction you want to make sure you do it right.