Creative financing...So many options..

[Alan Langer]

Hi everybody!
I have this deal on my desk and i don't know what to do..
I'm working on a 2 family in a nice area (private seller).
The owner is a nice guy, he own the house free and clear and is open for some out of the box thinking but he would like to walk away with a little cash. He is asking 475k (down from 650k) and he is ready to sell because his property has been on the market for over one year.

I have little cash (15K) but i really would like to come out of pocket as little as I can.
I have okay credit (mid 600) and i have a good job.

Is there a way i can structure a deal here with nothing out of pocket? i rather spend 15k on fix ups and cosmetics.

I was thinking maybe owner financing and a balloon payment in 12 months or a hard money deal. Can anyone help me with this deal?

Thanks!

[Jon Holdman]

What are you going to do with this property after you buy it?

If the owner will go for it, get a 30 year fixed rate loan at 5%. That's above bank rates, but still very low. If not 30 year, 15 year. I bought my first house back in 1987 with a owner carried, 15 year fixed rate loan at 9%. That may seem high now, but was a good rate at the time. I did put about $5K down on a $55K purchase, though.

Don't agree to too short of a balloon. You need time to fix your credit. Sorry, but mid 600 isn't "okay". 720 is "okay", 750 is "good".