All Forum Posts by: James R.

Option 1: If the sellers concern with seller financing is not getting his money than maybe offer 10% deposit ($10k). Upfront money may help ease his concerns. It's less than the 20% the bank wants. Seller obviously has the right to foreclose if you aren't making your payments. Setup the loan for 20 or 30 years with balloon payment in 2 years or so then refinance and pay him off. A shorter amortization would mean higher monthly payments to the seller which may help convince him; you'd have to run some numbers to see what you can afford. You also want to make sure you can do some forced appreciation to help your refinance. 

Option 2: You have a deal but not the cash, so find a partner who has the cash and is looking for a deal. Downside is you have to share the profit, plus side can be zero dollars out of pocket.

Option 3: If it's a deal with good monthly cash flow and cash on cash return then suck it up and pay the 20%. Do some forced appreciation if possible then refinance after seasoning period to get cash back. 

Option 4: Probably not an option as you recently purchased your primary residence so don't have the equity to borrow against.

Option 5: Talk to a lender about mortgage options. Also try small community banks. Maybe you'll get lucky and find something.

Disclaimer: Consider this 2 cents worth of advice as I'm no expert so it may be all it's worth. :-)

Congrats on your success, you've earned it.