Looking for creative options for seller financing

[Christopher Benedict]

I came across a decent opportunity. Home is only 3 years old. The owner bought it for cash, so no mortgage. She stays on the property maybe 2 or 3 times a year when not traveling out of the country. She is looking to move to Florida, and can't sell this home due to:

1) She wants top dollar
2) The home sits next to a transfer pump station (eyesore)
3) It sits on a main road (traffic, noise)
4) The community pool is behind the home and visible from the deck

The home is in immaculate condition. We can buy it furnished. We think it will make a great short-term rental in a very office-space-heavy area.

I want to offer her a higher sale price (closer to what she wants) if we can make the deal work for us.

Any suggestions?

Option 1: I was thinking she gets her $650k, she holds the note on a 40 or 50 yr amort loan. Maybe no downpayment, maybe a large one if she needs it to buy in Florida.

Option 2: We give a 10% down, she holds a 90%LTV note. Maybe a 3 year balloon that we have to refi out of so she can buy in Tampa

Thoughts?

[Joe Villeneuve]

You're heading in the right direction.  What you want to do is combine pieces of both of your options together.  Also, remember that interest rates are also negotiable, and the seller gets all the money from the interest.  I do Seller Financing all the time.  It's my favorite strategy.  There are many ways to do it.  If you're interested let me know.

[Joe Villeneuve]

You're heading in the right direction.  What you want to do is combine pieces of both of your options together.  Also, remember that interest rates are also negotiable, and the seller gets all the money from the interest.  I do Seller Financing all the time.  It's my favorite strategy.  There are many ways to do it.  If you're interested let me know.

[Chris Davidson]

@Christopher Benedict you are getting there and have a few options to give them but not too many to confuse them. There are closing cost so either you will need to pay all those or have some downpayment to cover them otherwise the seller is paying to offload it. 

If they are stuck on a rate push the amortization out and do a balloon, otherwise I would work on getting the rate lower and the price they want as you will get mor principal paydown vs less with a longer amortization. IMO I want a 5+ balloon, but if the deal is right will do it with a shorter.

Find out what she is looking to do though if she needs a downpayment for a house in Tampa that will be an issue that has to be addressed some how. 

[Christopher Benedict]

I was thinking 3 options:

1: Highest sale price - owner holds note with rate/terms TBD

2: Middle sales price - Lease option, with a 3 year purchase

3. Lowest price - We scrap together 20-30% and private finance.

[Christopher Benedict]

Quote from @Chris Davidson:

@Christopher Benedict you are getting there and have a few options to give them but not too many to confuse them. There are closing cost so either you will need to pay all those or have some downpayment to cover them otherwise the seller is paying to offload it. 

If they are stuck on a rate push the amortization out and do a balloon, otherwise I would work on getting the rate lower and the price they want as you will get mor principal paydown vs less with a longer amortization. IMO I want a 5+ balloon, but if the deal is right will do it with a shorter.

Find out what she is looking to do though if she needs a downpayment for a house in Tampa that will be an issue that has to be addressed some how. 

 I don't think she will be stuck on a rate. She wants options, and is very open to creative, which is helpful.

Once we present these basic ideas, we will want to know 1) what does she need right now, monthly, to let us take the property over (and all headaches) and 2) how soon and how much will you need when you make you Tampa purchase. (Sounds like it is at least one or two years out)

[Christopher Benedict]

Quote from @Joe Villeneuve:

You're heading in the right direction.  What you want to do is combine pieces of both of your options together.  Also, remember that interest rates are also negotiable, and the seller gets all the money from the interest.  I do Seller Financing all the time.  It's my favorite strategy.  There are many ways to do it.  If you're interested let me know.

 I am making this my big push, as it is a win-win right now, alongside my property management business.

[Wale Lawal]

@Christopher Benedict

Today’s investors should be equipped with not one but several financing options before approaching a deal. Going straight to a traditional lender for a mortgage may seem simple, but this approach will not always guarantee the best loan terms. In many cases, finding the best financing will require investors to get a little creative. That being said, there are so many unique ways to finance real estate it can be hard to fully understand what’s out there. The following creative financing options are a great place to start:

Cash-Out Refinance

Home Equity Line Of Credit

Personal Loan

Seller Financing

Lease Option

Self-Directed IRA

Hard Money

Private Money

FHA Loans

Crowdfunding

Cross Collateral

All the best!

[Joe Villeneuve]

Quote from @Christopher Benedict:

Quote from @Joe Villeneuve:

You're heading in the right direction.  What you want to do is combine pieces of both of your options together.  Also, remember that interest rates are also negotiable, and the seller gets all the money from the interest.  I do Seller Financing all the time.  It's my favorite strategy.  There are many ways to do it.  If you're interested let me know.

 I am making this my big push, as it is a win-win right now, alongside my property management business.

Not sure what you mean here.

[Stacy McElroy]

Quote from @Joe Villeneuve:

You're heading in the right direction.  What you want to do is combine pieces of both of your options together.  Also, remember that interest rates are also negotiable, and the seller gets all the money from the interest.  I do Seller Financing all the time.  It's my favorite strategy.  There are many ways to do it.  If you're interested let me know.

 How are you finding these seller financing deals?

[Joe Villeneuve]

Quote from @Stacy McElroy:

Quote from @Joe Villeneuve:

You're heading in the right direction.  What you want to do is combine pieces of both of your options together.  Also, remember that interest rates are also negotiable, and the seller gets all the money from the interest.  I do Seller Financing all the time.  It's my favorite strategy.  There are many ways to do it.  If you're interested let me know.

 How are you finding these seller financing deals?

You don't find them, you offer them...to owners that have 100% equity.

[Carlif Green]

@Christopher Benedict

How’d it work out for you