Buying a 2 Family Asset w/ only $2,500 Out of Pocket

[Thomas Visaggio]

The seller agreed to do a quitclaim sale into an LLC and then sell the LLC to my/my partner. I only have to pay $10,000 (over the course of 1 year with $2,500 being paid upfront) in order to obtain the ownership of the LLC, and the seller will remain on the loan until I pay it off via a refinance or sale. I see the greatest benefit in not having to pay closing costs and very little capital requirement for the acquisition.

I plan on using this offer for distressed sellers in the future, but suspect it will be very difficult to find other sellers who would be comfortable with this structure.

I guess it is a form of seller financing. Has anyone else ever been involved in a similar transaction?