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Updated over 18 years ago, 04/09/2006
possible owner finance
Need some advice on selling a rehab I bought with my father-in-law. This is our first venture into real estate financing, so while we both are skilled with our hands, we decided to make some profit for ourselves. Purchased a foreclosed fixer-upper for around 47k and if we keep our pencils sharp, we should have a finished home for about 60k. Anticipating ARV to be around 90k. About a month into work, we had prospects walking in the door. This neighborhood is just outside of a picturesque historic city, but is on the other side of the tracks so to speak. While most of the lookers were interested in renting or lease-purchasing, one lady caught our ear. She was the niece of the original owner. I decided to talk further to her, mostly to gain insight into the house (structure, septic/well history, etc). I told her that we were out to sell the house outright. I know she is fervently working on arranging financing, while we get the property together. Her situation is : married, both have jobs, credit issues, downpayment ? (probably gift from relative if that), desire for this house - incredible. Our situation: own outright, (financing secured from second on another property), need cash to buy next rehab. I will not let emotions get involved in the end, however, is there a way to make this work out for all. I am afraid if I try to sell a note that they sign, based on their credit score, we'll take a beating. Any suggestions?