Looking for creative ideas on financing/ deal structure for my dad's FSBO neighbor

[Gabriel Jordan]

Hi,

As mentioned above, my dad's neighbor bought a place downtown and is looking to offload the property. I naturally raised my hand as interested but don't have the cash to buy it outright (this would be my first rental). Anyone have any recommendations on creative ways to solve this that they have done in the past? I have heard some people talk about assuming their loan but no idea how that works exactly.

Thanks in advance!

Gabe

[Kerry Baird]

@KC Pake made an excellent set of options.  Nicely done.

I have found tired landlords who have paid off their properties; I found them by riding my bike in my neighborhood and striking up a conversation.  They want a lump sum for a part of their equity, and also to get monthly payments.  I pay 6% interest only on my mortgages to them, for a 5 year period of time. 

The other side of this is what THEY want and get.  They don't pay taxes on the part of the sale they don't receive.  They get their money over time and therefore pay taxes on the gain over time.