Creative Financing - Fix & Hold

[Nicholas A.]

Hello,

I bought a home in the Bishop Arts area in December 2021, one street south of Jefferson Blvd. A really beautiful home that was completely renovated which included an additional 15-20 feet of home addition to the back of the house. A complete gut and rebuild. This home is currently a long-term rental. 1,900 sqft, 3 bed, 2.5 bath, currently renting for $3,400.00 per month.

Recently, after some conversation with my neighbor, they let me know that they desire to sell their home and move away. I told him that I wanted to purchase the home. 

Home in Question: 1,996 sqft, 4 bed, 2 bath (duplex) / (Likely to adjust the bedroom / bathroom matrix to meet local demand). Will likely need to be completely gutted and rebuilt.

 He text me the other day letting me know that he's ready to sell. 

I want to creatively finance this deal. I have no experience with creative finance, but have an understanding of how this strategy is executed.

I have a few concerns / questions / thoughts:

1. How do I creatively finance a deal that will need major rehab?

2. I do not have capital for this deal, but can run / manage all construction etc, as I live locally.

3. I need a partner to compete this deal.

4. I have not presented creative financing as a solution, but I am confident that he would accept such a proposal if I could help him get what he wants.

I look forward to your input!

- Nick Aja