Help with creative finance

[Nicholas Cornford]

I am looking for some help to obtain a property. The property has a FMV of 1 million and the seller has agreed to sell for 850k. They have an existing mortgage of 688k with no other liens on the property. The seller has agreed to work do some creative financing but due to the mortgage I know my options are limited. The property has 2 structures on it with 3 units that rent for 4800/ month and I plan on living in one unit and using the income from the other units to qualify for the property.

My main thought is to find a 6 month private money loan to clear the existing mortgage and then have her carry the balance in the form of a note. In six months I could use the equity in the house and pull a loan.

Would appreciate any thoughts or suggestions

Mahalo

[Nicholas Cornford]

@Tom S.

Thank you for your input, I have thought about both of those things..  And am also working closely with my mortgage broker to try to make this happen.  The 850k is a cash price as i mentioned cause they do not want to sit in escrow again and hope that is closes as the last guy only had 5% down and they fell out.  Still just trying to look at every angle.

Thanks again for your time and input as it is very valued

Nick