Owner finance deal.

[Jarrett Thornton]

Just submitted my first written offer for a non traditional owner finance purchase. 

Verbal Agreement until next week. 

Just curious to know how others structure their own seller finance deals. 

Property Info: 

3/1 

3k needed for rental rehab. 

Price 60k. 

I offered 45k @ 5% for 15 years. 

Payment : $355.86

Balloon is being negotiated. Preferably 5 year.

Market rent $700-$850 

No Money Down. 

Warranty deed into my name. 

Title policy in place.  

Let me know what you would do differently. 

Thanks!

[Paul Thompson]

Congratulations for taking action!

Rule number 1: Seller asking price is irrelevant when you're an investor.

What do you believe the ARV is? And what is your basis for it?

I'm assuming you're strategy is buy and hold.

With rents at the low end of $600 you're just a hair over the 50% rule. And you're between the 1% and 2% rule but closer to the 1% rule.

Assuming the $60K is ARV you're a little above the 70% rule. You're around the 75% mark. What would I do differently not much. Just ensure your ARV and market rents are accurate and hope the seller bites.

Looking forward to what the seller responds with. This is why this business is so fun.  What will the seller come back with? It's never the same... never! Every deal is different.