Investor · Greater Holland Area · Member since 2022 · 7 posts · 2 votes
Hello Real estate champions,
Tomorrow I am meeting with a potential seller on a 2-unit , seller financed propriety and need some advice.
Pros:
Seller is older, tired of dealing with tenants, owns the house outright, doesn’t “need” money, and told me he wants to sell.
“Cons”:
Upstairs unit is in the middle of an eviction process. The unit is wrecked and will need a light-to-medium rehab. I don't know cost of rehab thus, I can't figure selling price, ARV, nor cash flow projections. Because of this lack of info I can't make an offer.
All the “signs” for a seller-financed deal are there. Being this would be my first seller-financed and rehab deal, I am seeking advice on how to approach this deal since we can’t discuss terms before we can figure a selling price, and the pending eviction restricts access to the upstairs unit.
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Work owner finance with nothing down. Structure the deal so that your monthly payments to him are less than rents coming in. In terms of price, ask him what is fair
Work owner finance with nothing down. Structure the deal so that your monthly payments to him are less than rents coming in. In terms of price, ask him what is fair
Thank you for the response Elliot. Any feedback on a creative way to handle the rehab? I can’t get into the unit to even begin assessing what’s needed. And I am planning on the rehab cost being a big ticket item, a figure that I need to incorporate into my proposal.