All Forum Posts by: Jarrell Smith

I've recently come across an opportunity to acquire a property via seller financing. Instead of renting the home out, I was wondering if it's possible for me to seller finance the house to someone else at a higher price (and rate of interest)?

For example,

I purchase the home from the seller with the following terms:

Price: $70,000
Down Payment: $5,000

$65,000 15 yr Mortgage @ 4.5%

Monthly Payment to Seller: $497.25


Then, sell to an end buyer that would live in the home with the following terms:

Price: $80,000
Down Payment: $10,000

$70,000 10 Yr Mortgage @ 7.0%

Monthly Payment to me: $812.76

Difference between monthly payment to original seller and monthly payment received by me: $315.51.


Is this a deal that could be done?

Thanks in advance!

Congrats! @William Byers 

Thanks @Curt Davis . If they signed the assignment with no deposit and became unresponsive, would you assign to another buyer before the contract expires?

@Curt Davis If the buyer was completely unresponsive after signing an assignment, would you write up an assignment for another buyer to close the deal or do you wait for the original contract to expire then renew it before assigning it to another buyer?

@Guy Gimenez Just about everything was covered in the assignment contract with the exception of the buyer "disappearing" without notice.  Even if they were trying to flip their position as the assignee to another investor there is a clause requiring written consent from me to do so.  

@Terrence Smith That's exactly where I am in this deal.  I have a #2 buyer that is eager to do the deal while still trying to find buyer #1.  What if buyer #1 never responds to anything?  Would I be stuck until the contract contingency date expires?

@Belinda D. Yes, I have contacted the title company and they have not heard anything since he put up the $1,000 non-refundable deposit.  The whole situation is rather bizarre to me.  There is no clause saying I could not reassign the contract again, but how much time would you let pass before you did reassign to another buyer?  Or do I need to somehow get buyer #1 to sign a document to nullify their assignment before I reassign it to another buyer?

Thanks everyone for your input!

Hello BP,

I'm currently in a bit of an unusual situation.

I put a property under contract with intentions to reassign the contract, then started marketing it.  Within a few days a potential buyer contacted me and put down a $1,000 binder.  We both signed the assignment contract and then he was gone and unresponsive.  A few days have passed and the buyer has not returned any calls, texts, e-mail, etc.

What am I to do in a situation like this?  Do I have to let the original purchase contract expire before I can attempt anything with the property?