Helping a seller who needs 60k to sell their home.

Detroit, Michigan
Buying & Selling Real Estate
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Helping a seller who needs 60k to sell their home.

JuJuan Buford
Member since 2021 · 3 posts · 1 vote

I have a seller who desires to sell their residence ARV 160k, ASP 130k. 100% equity. I'd like to master lease the residence for 3 years, then acquire it. However, he needs 60k (debt issue outside the home), and has challenged credit. Earns good income. How would you help him?

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1y
Quote from @JuJuan Buford:

I have a seller who desires to sell their residence ARV 160k, ASP 130k. 100% equity. I'd like to master lease the residence for 3 years, then acquire it. However, he needs 60k (debt issue outside the home), and has challenged credit. Earns good income. How would you help him?


 I would not help him if you need $60k and are paying $130k for a $160k proeprty. You will be upside down by a huge amount.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @JuJuan Buford:

    I have a seller who desires to sell their residence ARV 160k, ASP 130k. 100% equity. I'd like to master lease the residence for 3 years, then acquire it. However, he needs 60k (debt issue outside the home), and has challenged credit. Earns good income. How would you help him?


     I would not help him if you need $60k and are paying $130k for a $160k proeprty. You will be upside down by a huge amount.

    7e investments53 Reviews
    WebsiteView Page
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  • Dylan Brown
    MN · Member since 2025 · 107 posts · 97 votes
    1y

    This could be structured as a contract for deed instead of a master lease.  

    If you are liquid enough, you could always use 60k as the down payment on the contract for deed and then just finance the rest.  If you do not have the 60k lying around, you could potentially finance the 60k down payment on the contract for deed, though I would want a lender to pop into the thread and weigh in if that is something a lender would typically go for (my guess is maybe not).

    If those two are not an option, why doesn't the seller just take out a mortgage against the home and then move forward with the contract for deed or master lease? That way they get their 60k, but you can still either lease or enter the CFD.

    If all else fails and they are very desperate to get the cash, there is always the option to offer them significantly less than you are currently offering and then you can almost certainly find an investor willing to front the cash if the purchase price is far enough below the FMV or ARV.

    Curious to hear others’ thoughts!

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  • Andre Brock
    Investor · Cleveland, OH · Member since 2013 · 120 posts · 77 votes
    1y

    for me when I do seller financing I like to get in light as possible and to have 60k tied up in the property might not  be my kind of  option. Essentially that’s like putting  down about 48% of down payment.  Any amount of money that I leave in a deal I have a certain amount of time that I would like to have the property to have me paid in full by. 


    good luck.

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