Creative Owner-Financing Question

[Justin Callaway]

I haven't been here in a long time. Also if this is in the wrong place, please move it.

I had a thought about creative financing. With Owner-Financing, how do you think it would work with downpayments? Most require downpayments I know, but what if the property (a multi-unit) was already producing cash flow, do you think it would be possible to get them to accept the cashflow before the "loan" payments start as the down payment?

Essentially, you pay nothing down, but as part of the contract, they accept all cash flow up to whatever the downpayment is, before the payments are to start on the property, and anything that is deliquent at that time must be paid in full.

So if downpayment $10k and cashflow is $4k and the payment on the property start in 2 months, then you automatically give them that 4k in cashflow each month and that gives you 2 months to come up with the other 2k for the down payment and then you proceed with payments in accordance with the contract.

Is this done? Does this even make sense? I want you all thought. I'm looking from a college kids view of what would be great for me to get into investing (I want to start in small multi-units), with just a general example.

[Matt H]

There's a lot of factors when it comes to creative financing. There really is as Trump says "The Art of the Deal". Because you need to know what to do in different situations. It depends on the current mortgage(s), interest rates, how flexible the seller is, how flexible the bank is, so many factors. Best thing to do if you don't know what to do is this. Get the property tied up. Then approach a seasoned investor and find out how they would proceed to negotiate and ask a lot of questions. Then soon enough you'll know what to do for various situations that you encounter. Like I have the same problem, I have a couple apartments for sale and I'd like to move them, so I'm willing to give a lot of seller financing but it all depends if the bank will play ball or not. Often they want to see at least 10% down.

[Tony Severino]

Justin

Creative buying is all I do, be it seller financing or buying subject to, or using private money... etc

Yes the deal you mentioned can work,,, here is the key, if the seller is willing to do it.

Any seller to buyer financing is fine, as long as it is legal and moral and ethical.

One thing you may want to consider is why is the seller looking to sell, is he tired of being a landlord or are they looking for a boatload of money to move to the warm islands with?

Motivation can sometimes give you insight as to if your plan will work or not...

Now Go Get A FREE House.

Tony Severino
[REMOVED]