How to structure seller finance house hack

[Danielle Shaw]

My family is looking to relocate to upstate NY. We are in search of a primary residence on acreage that we can convert a barn or garage into a STR. We have found a property we like and here are the details.

NEED HELP structuring the offer/deal.

- my agent is also the listing agent and neighbor of this property we like

- the owner owns the house outright. He had plans drawn up and started the project but found another project and now has decided to let this one go.

- the circa 1770s house currently has had the floors in dining room carefully removed (to be put back in future) and drywall removed in the dining room. The heating and cooling has also been removed so it is not currently lendable with a conventional loan.

- this is a hot market and no one has put in an offer, however today the owner notified my agent that he is going to possibly accept a lower than asking cash offer he received before he put it on the market.

What we want to do

- offer full asking price

- deferred 3 months payments

- renovate home

- then do conventional mortgage through lender after it is renovated and can have a mortgage on it

(I’m open to other suggestions as well - this is not something we expected to get into and I don’t have the time to research as much as I would like)

But how do I structure this offer to the owner? He doesn’t need the money immediately (I don’t think) so I think he may be open to waiting a few months to get the price he wants.

I’m not sure how it works legally so that both parties feel secure. Really don’t have an idea of how to put together the seller financing contract or who puts it together? Attorneys?

And what if the renovation takes longer than 3 months? What do I put in the contract then? Monthly payments after 3 months with interest or what?

Thanks in advance for anyone that wants to chime in!