Creative financing ideas

[Tori Smith]

Hello bigger pocket members, I believe I may have found a great deal. Only problem is I do not have the money that is required for the hard money loan. The hard money lender is staying at I need to cover the difference between the ARV and purchase/rehab cost. I need about $43,000. Would seller financing be a good idea to get this deal done? What are my options. Regards, Tori

[Bill S.]

@Tori Smith so why use any hard money? If the seller owns free and clear you can offer more since there would be no hard money needed. You can do a warp or a partnership to increase net yield to the seller. You have to get in front of them and talk about their needs. Until you talk to them, it's just pie in the sky and you are likely wasting energy. Most sellers won't go for seller financing but unless you ask you know the answer.

Some hard money lenders won't lend with seconds on the deal because there is a risk that the 2nd gets recorded before the first in which case they are no longer the first.