How to Best Structure a Seller Financed Deal

[Blake Dailey]

Hi Everyone,

I have a seller interested in a way to creatively sell his property. It is a 4 bed 2bath home that has been mostly remodeled. It needs another $10k in cosmetic work. He wants to sell it for $95k and it will be worth about $127k. It will rent for $1300/mon. 

He owes $77k on the property still, and has $800/mon payments. He said he would seller finance it but that may violate his due on sale clause. He also said he would master lease option, or transfer the title subject-to and finance the remaining purchase price. He is open to creative financing, he just wants out from the property.

My plan is to BRRRR this property. But I don't have enough to purchase the property with a down payment using a conventional mortgage and there may not be enough meat on the bone to use private money for the down payment.

What is the best way I can structure this deal? Thanks!

[Neal Collins]

@Blake Dailey You’ve got several different options.

Give him a cash price that works for you if you want to go as simple as possible.

Long term master lease option could be ideal.

Wrap note could also keep the existing debt in place.