Need creative financing ideas to sell my condo in OHio

Need creative financing ideas to sell my condo in OHio

Investor · Bellefontaine, OH · Member since 2016 · 5 posts · 0 votes

I'm trying to sell my lovely condominium in Ohio. I had an offer of $115K but the buyer was unable to get financing at the last minute. He had wanted to move in on closing day. I was notified 2.5 days before closing that he couldn't get financing. Ugh. By then, my house was virtually empty and I decided to move forward with leaving the state as planned. 

So, my condo is now back on the market. I have it listed for $114,900 which is a very reasonable and comparable price. If anything, I'm UNDER market value because of the size and amenities my condo offers. I'm now out of state and have had several low-ball offers. The latest one is still $15K under my asking price. Instead of giving it away, does anyone have any creative financing ideas that I can suggest to the buyer for a way for her to buy it? I came up with these two scenarios: 1) mom and dad finance her down payment ($20K) so her loan is only for the difference of $95K. Her budget is $100K max. 

Another possible scenario: 2) she somehow does her basic loan with the bank and I finance the rest as a land contract. I'm not excited about this because I need to get the equity out now so I can get on with my own life. 

Help! I don't want to lose another deal nor do I want to hang on to the condo for months on end because I don't have any offers. This is a retail sale not an investment deal.

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Entrepreneur · Naples, FL · Member since 2017 · 42 posts · 20 votes
9y

hope you wont mind me being straight forward . i apologize  in advance. 

1. why not sell it with owner financing by yourself .

     selling with terms when the buyer has trouble getting a loan (you can ask for a bigger down payment , but reasonable )

      term buyers dont mind paying a little more .

      get creative with down payments ( ask if they have something to trade with ,could be anything , boat ; car ;

gold ;diamonds ; plane ; IRA ; anything )

2. you will get to raise the price when you do this .

3.  try not to get emotional about the sale . look at the numbers , that's how i look at it .

4. need help with buyer trustworthiness  , check out 

   www.screenthetenant.com

hope this helps , if not , sorry . I tried  . all the best 

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  • Rental Property Investor · Chicago, IL · Member since 2017 · 17 posts · 2 votes
    9y
    Hi! Just brainstorming a few things from what I've read in the BP book on creative investing with little or no money down. While it's aimed at investors, it's all about obtaining financing which is what your buyer seems to need. What about an FHA loan? It would make the process longer but that would only require 3.5% down which could make the financing piece easier on the buyer or her parents if that's something they can help with. Airbnb might also be a consideration for the buyer for the mortgage payment if it has more than one bedroom and HOA allows. You mentioned your main concern is getting your money out of it- I wonder if it's possible to do a lease to own type of deal, with an initial down payment (assuming they can get that amount) that would cover the money you want to take out. Maybe someone else can chime in on this? Another question to throw out there for consideration- Is it possible to use a HELOC on a property that, as the owner, you are doing a lease to own option for a renter? I'm thinking technically it hasn't been sold... if this is the case, then you can use the equity you've built up while receiving cash flow and she gets to purchase the home without the need for that initial down payment. I do see potential risk here but if the BRRR strategy is used, could it work?
  • Entrepreneur · Naples, FL · Member since 2017 · 42 posts · 20 votes
    9y

    hope you wont mind me being straight forward . i apologize  in advance. 

    1. why not sell it with owner financing by yourself .

         selling with terms when the buyer has trouble getting a loan (you can ask for a bigger down payment , but reasonable )

          term buyers dont mind paying a little more .

          get creative with down payments ( ask if they have something to trade with ,could be anything , boat ; car ;

    gold ;diamonds ; plane ; IRA ; anything )

    2. you will get to raise the price when you do this .

    3.  try not to get emotional about the sale . look at the numbers , that's how i look at it .

    4. need help with buyer trustworthiness  , check out 

       www.screenthetenant.com

    hope this helps , if not , sorry . I tried  . all the best 

  • Investor/Agent/CPA · Columbus, OH · Member since 2015 · 249 posts · 207 votes
    9y
    Becky, where is your condo? I invest in Columbus if it is a condo that is allowed to be rented out per you HOA? Let me know. Thanks
  • Investor/Agent/CPA · Columbus, OH · Member since 2015 · 249 posts · 207 votes
    9y
    Becky, sorry. Just saw your last sentence that it is not an investment deal. Thanks
  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    9y

    @Becky Engel The bank is not going to allow any secondary financing on the condo. Your only option is to wait for a qualified buyer to come and make a standard offer. If you want to expedite the process increasing your marketing or lowering the price are the only options.

  • Contractor · Akron, OH · Member since 2014 · 27 posts · 5 votes
    9y

    Hello Becky I'm currently going thru the same disappointment I bought a condo in Akron Ohio planning on selling the condo,had a qualified buyer but then the bank wouldn't finance the buyer saying reason being because someone owns 65% of the condos there.So what I have to do is find a buyer with a large down payment in order for them to get financing or someone has to buy with cash.So what I ended up doing is renting the condo out,exactly what I wasn't planning on doing.The only other option is to sell thru auction 

  • Investor · Las Vegas, NV · Member since 2014 · 471 posts · 241 votes
    9y

    @Becky Engel....Questions:

    1) What is the actual price that will cause the condo to move the fastest in your area (30 day sell price)?

    2) How much equity do you have in the condo & how much of that do you NEED back?

    3) Do you need the loan payed off to move on?

    4) Are you OK with getting your equity out AND doing subject-to transaction or wrap with a buyer who wants to make it their primary residence?

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