I want to stay away from traditional financing for this one for a few reasons: house is a gut and would never get approved, I'm planning a larger multi-family purchase later this year and need to preserve credit, this will be a flip so short turnaround or possible BRRR.

This is a single family. It has been vacant and previously owned by a hoarder. Home has been cleared and I have been through with a GC so I'm comfortable with the scope of work (managed similar projects before). This property will never get financed with traditional lenders and I can't finance cash myself. This property is listed with a realtor but my license isn't valid in the state of Indiana (I'm licensed in IL). I think, but haven't confirmed, this is held in an estate after the owner recently passed. Sale price is roughly $100k. Reno would be at least $75k. ARV is roughly $250k. Average rehabbed properties sell in 30-45 days without staging or professional photos. Already been in the market for 30 days and moving into the slow season for this area. If I snag it now i would have it back on the market in peak season next summer.

I’m thinking about two options: (1)seller contract with 12month balloon or (2) private/hard money plus contract. Any other options?

First, on contract, what is the sellers incentive here especially if it sits in an estate. How can I position this as a value add for them? Also, is it possible to get the buyer side commission from the broker if I’m not licensed here? How would you structure this proposal?

Second, private/hard money, what are some ways you might position this? Ideally, I’d get 100% financing (75% private/hard with seller carrying 25% note) or something along those lines. I don’t have a private money lender currently in my network (working on it). I have cash if needed but trying to keep that in reserves so I’m liquid if the reno requires additional capital. How would you attack this?

Thoughts? Ideas? Referrals?

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