Updated over 10 years ago on . Most recent reply
Creative Financing in a Depreciating Market
BP Community,
The market where I have been investing is experiencing a downturn in home prices. There is now a glut of 3 bedroom, 2 bathroom homes, which I like to use for rentals, but most of the homeowners are clinging to their high asking prices in an effort to recoup the paint, carpet, and upgrade work they have done before the sale.
Does anyone have a creative-financing strategy for purchasing homes in this market? I imagine there is a way to offer the original asking price but change the terms to be more favorable; either a lower interest rate, a no-interest loan for the first five years, an extended fixed-rate loan, or something similar. It would be great to find a solution where the sellers can achieve their high asking prices, and yet remain a profitable investment for the investor who can close the deal.