Flipping using Owner Financing and How to Structure

[Sean Salandy]

How would I go about structuring a seller finance deal for a flip? I know the terms would depend on the sellers situation but I guess I’m looking for an example of what one would look like. So for a house valued at $160k with minimal work needed (15k). Home is owned free and clear and seller has no immediate need for cash. With a HM loan, I would need to offer lower but I might be able to offer a little more if it is seller financed for a short period of time until it is flipped. Would it be an interest only loan? What is a typical interest rate and down payment in this scenario? Any thoughts? Thanks.

[Brandon Sturgill]

@Sean Salandy The terms are always negotiable and based on the owners needs...I just did one on a 12-yr am schedule because the owner need to get a certain dollar amount every month...it's all relative, but you want the least out-of-pocket up front with the most monthly cash flow...and enough time to reposition the property if you have a balloon payment.