Owner Financed Deal!!

[Ed Walker]

Good morning/ afternoon BP family,

I have an owner finance deal that I am pursuing and would like the best course of action. Here is the deal:

Property has an ARV of $250,000

Purchase Price is $190,000

Rehab: $5,000-8,000 (for a lease option tenant)

Seller needs $30,000 at closing

Financing: 15 years at 0 %

Rental amount: $1,800

My payment (including T&I): $1,100

Suggests Please!

[Kathy Utiss]

190,000/$250,000=76% LTV

.05% CLOSING COSTS

.05% REHAB/REPAIR TOTAL IS $209,000 LTV IS 86%

+ $30,000 TO SELLER Your Purchase Price ends up being $239,000

If you have any holding costs in the meantime that leaves $10,000

Now if you couldn't take this on yourself and had to forward to an investor he'd have to eat the $30,000 and sell it to you at $150,000. As $250,000 x .75=$187,500 The payment sounds nice on a 15 yr note. A lease option tenant leaves the owner on the hook if his debt isn't paid off.

Yes you may make a couple of bucks on the down payment from a lease option tenant but if something happens he's still holding the bag not you. I know some people do sandwich leases there are some pros. However, some back out after making such a deal. Then leave the owner on the hook. Then they'll do anything just to get out from underneath it the bank will accept. But he's trying to take a buyer for a ride in my opinion.

I'd try to find out what is due on the actual note before I pay a dime. Also, make sure owner isn't involved in a bankruptcy either. A s then the property will have to be bought thru his bk case/estate. Wish I had a better idea on good advice ;)