Seller financed rehab

[Carl Schmitt]

I know a lot of people fund their rehabs with either they're own cash, hard money or private money. They purchase the house with it, and pay the rehab costs. However, what if you found a property that needed to be rehabbed, that the current owner was willing to seller finance? What are the chances you could then find an investor/partner with the cash to do the rehab? Would any outside investor loan money in that situation considering the seller has the first position if the project were to fall apart? The goal would be to fix and resell.

[Will Barnard]

Carl, not only are these deals possible and completed by other rehabbers (myself included), they can actually be even better than without seller finance and here is why: The availability of easy funds! If you brought me a rehab flip deal with the seller carrying the acquisition, and I only needed to bring in the rehab, I would be all over it (as long as there was a real spread) due to the ease of the funding.
So yes, you can find a JV partner for a deal like this and not only does the deal NOT have to be better than the norm, it could even be a tad tighter, but the added benefit is the locked in funding that comes with it!