Seller Financing

[Francisco Ycaza]

Good day  BP members ,

I have a Seller that might be Interested in Seller Financing . I have don't have any knowledge how to approach the Seller about this . It is a 2 Family in the Bronx and the property needs extensive rehab on 1 unit and the 2nd needs cosmetic work. In the " AS -IS" condition property is worth $190-210k , ARV is about $400-425k. Property and needs $50k in repairs this is a conservative number I am using . I would like to know what would be the terms and conditions that I can present to the Seller on this property ? Any feedback is highly appreciated !

Regards,

Francisco

[Ellis San Jose]

@Francisco Ycaza 

I look at every owner finance offer with this perspective:

1) What loan terms can the property easily support.  Price is irrelaveant

2) What is does the seller truly want, which can be remarkably different that what they say they want at first.

3) Ignore all input regarding, private money should be paying "x" interest rate, or you should offer at least "x" % down payment.  Focus on #1 

4) What do you want from the deal? What is your projected rate of return on your investment?

Net Income?

Downpayment + rehab costs? 

Transaction expenses?

Time investment needed