​Seller Financing Ideas (Santa Cruz, Scotts Valley, Felton, etc)

[Jonathan Pflueger]

Seller Financing Ideas (Santa Cruz, Scotts Valley, Felton, Ben Lomond)

I am looking to figure out the best way to owner-finance a SFR deal. I have fostered a good relationship with the owner and they are very interested in selling to me off market and without a realtor. My goal is to put as little money down as possible, rehab, and live in the house 6 months to a year and then sell or refinance with a 30-year fixed.

The seller’s goal is to sell the house and buy or rent something in the nearby area. The area that I am in is definitely a sellers market and inventory for houses is very low. So how can I create a deal that is good for the seller and good for me at the same time?

I am open to any and all advice, critiques, and comments. I firmly believe that the best deals are those where both parties are happy and that is my goal. I am also open to other ideas, not stuck on owner financing as I am able to qualify for conventional, FHA, etc…

The house is in decent condition but has some deferred mx and needs updating (kitchen, bathrooms, flooring, 400sq ft deck, etc…).

3 bed, 1 bath

ARV: $600,000

Needed Repairs: Approx - $70,000

Acquisition Cost: Approx - $450,000

Amount owed on mortgage: $75,000

[Brian C.]

Hi Johnathan

Sounds like a good deal, but bank, and particularly FHA financing might be a problem if the condition of the property needs help. If you have the 75k to clear off that mortgage this sounds like a win/win. If you agree on the 450k price, let them carry as much as possible. Maybe 100k down..seller carries 350k? Good luck