Lunch Break Post (Seller Finance Deal Problems)

[Aaron Bard]

Hello!

So recently I came across an off-market deal in my area. I called the number on the sharpie marker sign and a few days later I met up with the owners and walked the property.

it's a well maintained (on the outside) duplex on a large double-lot with tons of parking. And this property has SERIOUS value-add potential. I mean crazy!

For example:

• 2 blocks down from the second largest hospital in the area so perfect for traveling nurses.

• Needs lots of new paint, floors, wallboard, plaster repair, fixtures, and updated appliances.

3. Has the potential to add a 3rd efficiency unit with a 90% finished 3rd floor.

etc. etc.

Here's the problem...

The sellers of the property offered it to me for $200k if I could get financing. I explained seller financing and they were opposed to it because of their age, which is understandable. So my counter-offer was that I would pay them a small down payment, and have a contract saying that I must pay them in full within 18 months. I figured that I would be able to get the necessary reno done and refinance to pay them off.

But they don't like anything I throw at them.

I think that this is a huge opportunity and I don't want to miss it...but when do I know that I should walk away?

Any input or advice I'd appreciated.

Thanks BP fam!

[Alexis Datta]

Hey Aaron - thanks for the info! Definitely understand the frustration of your seller financing issue. I think these details definitely cement the viability of a fix-and-flip product - given your history / plan for the project, it could look like a 10% down situation if that's reasonable for you financially.

Once you complete the property, you could then do a DSCR to pay off the initial fix-and-flip as then you will have the rental income to show for it. When you get a chance, send me an e-mail (it's in my bio) - let's connect and talk details to see if we can come up with something that works for you.