Creative Owner-Financing Question
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.