Delayed Financing with Owner Carry

[Brant Jones]

Has anyone used delayed financing in combination with a small owner carry, and does it meet the criteria for the six month exception?

I am looking to purchase a property at 70% ARV - mostly cash. Owner owes $55k, but wants $70k for the property. ARV is just north of $100k. My thought is to pay off the owner's existing mortgage, cash, and have them carry back a small note ($15k) for the difference. The numbers definitely work even with the owner carry note in place, but the goal is to refinance, pay off the owner carry note and pull out my cash.

Looking forward to hearing from the community on whether this is possible, and if it sounds like a good idea. Thanks in advance!

[Chris Mason]

If the seller is carrying a $15k note, then it's not a cash purchase. It's a financed purchase in California. The delayed financing exception will not apply. The six month wait will apply.

You will need to get more creative...