Possible seller financing deal

[Brandon Knudtson]

Hello BP community,

So I am looking into a potential deal on a 4-plex where the seller will finance for 2 years since the listed price is slightly over what I can get with a conventional loan (haven't talked specific terms with the seller since this deal is just in the beginning stages). My question is how do I make sure I can refinance the property in the 2 year window that the seller is willing to carry. Just trying to do my DD before jumping into a deal I don't fully understand how it works. Do I need to improve the property/raise rents enough over the course of the 2 years that a bank will give me a traditional loan at that point?

Thank you,
Brandon

[Bob Okenwa]

You'd probably want to get with a lender and ask them how they'd prefer you structure the seller finance deal before you bring the refi to them. Always prudent to begin with the end in mind. Make sure the seller puts a lien on the title and records it at the county recorder's office for. Of course you'd need to qualify for the conventional loan so you'd need your credit, DTI, income, etc. all in order as well.