(20) Props to Structure Seller Financing... LOOKING FOR SUGGESTIONS

[Taylor Jennings]

REF 13030-P1

The seller wants to unload (34) houses and (5) parcels of land.

The seller owns the properties free and clear.

I don't have the money to buy all these and then fix them all up... But I do have a private lender who can fund the rehabs.

MY PLAN:

1) Wholesale (14) Houses

2) Use Seller Financing for (12) so I can fix and flip them

3) Use Seller Financing for (8) Rentals then Refi out or use the money from the flips to pay the seller off

4) I'll buy the (5) parcels outright and build houses (if allowed) after the flips (I'm partnering 50/50 with a builder)

MY QUESTIONS:

A) What terms should I offer / how do I structure a win win for both the seller and myself?

B) What are some things I should mention/offer to entice the seller to structure the deal this way? (ie Reduce capital gains since he is receiving money for wholesale houses, increase the amount I can purchase house for, etc)

Thanks! Your expertise are greatly appreciated!

[Ben Leybovich]

@Taylor Jennings

I am being hard on you because I want you to succeed. I must warn you on that line of thinking. Here's my take:

1. You must know enough about the law and what you want to do in order to be able to speak intelligently to your attorney...

You must know enough about the accounting and what you want to do in order to be able to speak intelligently to your CPA...

You must know enough about building and what you want to do in order to be able to speak intelligently to your contractor...

You must know enough about REI and what you want to do in order to be able to speak intelligently to other investors; specifically with regards to an intricate deal such as what you are proposing...

Mind you - you don't have to know everything your advisors know - you shouldn't; that's why they are there. But, you must know enough! My comment above reflected my concern that you do not know enough yet. If I am wrong, it wouldn't be the first time or the last Taylor. But, do you know enough - RE can bite... Good luck man :)