Seller Financing / Creative Strategies

[Trey R.]

I've done all conventional loans up until this point and am seeking a little input/guidance when it comes to more creative ways to finance a property.

I am attempting to purchase three homes from one seller.  They are selling for approximately $70k/each and the seller owes $50k on all three properties combined.  We have spoken and they said they wouldn't be opposed to seller financing.

Being that the current owner still owes money I know that the due on sale clause comes into play.  That made me think about possibly doing partial seller financing.  My main goal is to try and refinance them after 6 months.  We haven't talked rates or anything but a down payment of $15k was mentioned.

The seller is definitely motivated since they are moving so I'm trying to make something happen before another investor gets in the way.

Assuming each property is purchased at $70k that makes the total price $210,000. 20% of $210k is $42,000 which means I would need $27,000 from the seller to reach a 20% down payment if going through the bank. I would prefer to avoid banks completely but this was just an idea. I have also pondered the idea of using HML to get into the deal and then refinancing my way back out.

Anyone have any thoughts?