Found a great Deal - Need help with Owner Financing Terms
I found a great off-market flip deal where the owner is willing to do owner financing (great for me since I've exhausted my personal credit on other rehabs) My summary and specific questions are below:
The Deal: $250k purchase price, 10% down, $50k rehab costs, $375k minimum ARV
Structuring the Terms:
1) Owner is giving three financing options:
a.Amortized 6 month loan w/ scheduled provided by Seller (interest of early pay off will be required)
b.Balloon 6 month loan w/ scheduled provided by Seller (interest of early pay off will be required)
c.No monthly payment with amortized interest added to money due at time of closing
2) Owner wants to keep title under their name until loan is paid off, but the owner still has a note on the property. So, knowing that I won't have a big enough down payment to pay off their mortgage, is this legal? Are there contracts that could be used to work around this: Lease to Own? Contract for Deed?
I understand this is risky, but I'm eager to make this work no matter what in this extremely hot market! So, please don't tell me I shouldn't do it, tell me the best ways to protect myself and the best ways I can make it happen! Looking forward to the wisdom!