I'm a relative newbie, I just starting establishing systems to look for off market deals (D4$, cold calling with a dialer, etc). My cold caller identified this lead and I wanted to see if I could come up with a creative finance solution in addition to an all cash offer in order to give the seller options.

Location: Fresno, CA

Built 2010

4bd, 2 bth, 1600 sqft

ARV= $415k

Their current asking price for an all cash offer= $390k

Their mortgage balance ~120k, interest rate is 4.51%

Roof is original (14 yo), HVAC is new (replaced last year), no other updates or major repairs that he's stating.

Situation:

The husband states his family of 7 has outgrown their current home. They've been trying to buy a new construction home but they've been getting outbid. He also states they don't have enough for the down payment (which he says he needs $230k for the downpayment). I know that down payment doesn't really add up to me because even the 5bd/3bth new constructions are going for ~615k, which even if he was putting 20% down as an owner occupant, that'd be something like $123k for a down payment...

He wants a cash sale of the house to make this seamless. He also would like for the family to be able to rent to stay in their current home for a few months so they can buy then move directly to their next home. He doesn't want to move to temp housing, get storage, etc.

Offers:

Cash as-is: my max allowable offer is $242,700; with this, I'm thinking I can let them rent for 3 months for free to sweeten the deal. They're also avoiding short term rental fees, temporary storage fees.

Creative finance: they have too much equity for a subject-to deal; but I'm wondering if I could do a wraparound mortgage of 300k at 4.51% (payment would be around $1785/mo; market rent is around $2300/mo) and maybe offer like $40k cash?

My exit strategy: for cash as-is offer, I'd like to flip this or wholetail it. For creative finance, I'd keep it as a long term rental.

Any angles that I'm missing? I'm very new to creative finance and I'd appreciate any thoughts! This is probably not much of a hot lead because they're not in real distress and they're likely just unrealistic with what a cash offer will be. I know I have to do some more digging to find really why they don't just want to list this house on the market.

Fresno, California

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