Advice on how to stucture a deal

[Dario Cruz]

Good evening BP! I am currently under contract with an off market deal found during driving for dollars. The seller and I agreed on a purchase price of 250k, repair estimate is 75k, ARV is 400k+. The caveat is the seller owes 270k mortgage, the loan is 15 years in. Seller has agreed to come out of pocket 20k to get rid of the property but I wanted to know what suggestions or opinions you have, could I structure this in a better way, like a sub to? I've never purchased a deal off market much less ever done a sub to deal. Thanks in advance, as always I greatly appreciate your feed back!

Dario

[Andrew Postell]

@Dario Cruz if the seller has agreed to sell the property for $20k less than what he owes I would suggest closing on this deal asap. I would NOT suggest taking on seller financing and allowing the seller to keep that extra $20k in place. Remember, that comes out of your pocket now if it's financed "subject to". A standard Hard Money Loan (HML) should lend you 70% or 75% of the ARV so make sure you are prequalified beforehand to know how much money out of pocket you will need on this deal. Hope all of this makes sense.