All Forum Posts by: Joe Butcher

Heres the situation:

The house is owned free and clear

Seller is motivated but not desperate. It was listed on MLS and didn't sell.

ARV: $150k

Rehab est: 20k

My cash offer: 80k

I dont think they will accept the cash offer, so I want to offer a seller finance, just not quite sure what to offer so here is one scenario I came up with:

$135k with 5K down at 5% interest, amortized at 30 years with balloon due in 5 years.

Does that make sense? Does it sound reasonable? I am not totally familiar with seller financing so I may be way off here....feel free to tell me I'm crazy or whatever. If it's not an attractive offer, then what is?

Joe Butcher

Hi Nick, welcome and make sure you come to the BP monthly meet up........It's a great place to network and learn without the sales pitch.

Thanks @Aaron Montague

Im still not sure I understand how this is beneficial....from what I gather, if I was to do owner financing it would be at or near retail price......how does that work to my advantage?

Is there anywhere on here to find a seller financing proposal?

Do I need to be concerned with the SAFE act?

I am just getting into wholesaling and have my first opportunity on a property that is owned free and clear.

I am going to make an offer on the property, and if they dont accept my cash offer I want to be able to offer seller financing as an alternative.

How do I go about proposing this? How should I present it? To be honest, Im not sure I understand how it works completely.

Thanks

@Wes Eaves

Since there is some distress to the property AND he is behind on payments does that lessen the chances of a sub to making sense? I imagine that there would need to be a great amount of equity to justify me paying for the repairs and getting the payments up to date?

And yes I would be considering using it as a rental.

Also, what is the optimum situation in which a sub to makes sense?

Thanks @Jerry W. and @Zach Schaar .

Could there be a situation where it makes sense to pay the payments he is behind on and then take over the financing? I imagine there would need to be a considerable amount of equity there for it to make sense?

I know a guy who is behind on his mortgage and is going to let the house go back to the bank.

I would like to make him some kind of offer. It may be too soon to ask this because I dont have all the details yet, but I would like to hear your thoughts.

First off, I know the house has some foundation issues though I dont know to what extent. There was also termite damage that from what I know of was not dealt with professionally. He has been in the property for about 10 years so I would imagine there is some equity there.

Can I offer less than what is owed on the property? Why would a seller agree to that? Is that even possible?

Could I pursue a sub to ? Take over the financing and rent it out? Would I be looking to give him any cash in order to do that?

Other options?

Thanks again, BP community!

I would think that if you are going to flip, you are looking for a distressed property.

FHA will not loan on a distressed property.

@Chris Feltus great video! That explained a lot