Offering a cash-out option to seller financing?

[Marc Freislinger]

I debated what category to put this in, but I was hoping you guys had some input for me.

I have a seller who needs cash ASAP. I have enough cash to do the rehab, but not enough to buy the house and rehab it.

I was hoping to convince the owner to take a note for the sale price, that they could then sell to get the cash they needed. We'd allow them to get their full asking price on the note, so they could wait for the 1 year balloon payment, or sell it at a discount to a note buyer.

I'm wondering how hard it would be for the seller to sell the unseasoned note, and/or what they'd have to do to get it sold. I don't know much about buying/selling notes, so any advice would be greatly appreciated.

[Loc R.]

Marc,

How quickly do you think you can get the rehab done and the property sold?

Off the top of my head this sounds like a hard money scenario, as your seller is going to need 20% down from you and 3-6 months seasoning if he is to sniff .80 on his note (which still leaves him at 64% of his asking price + your down payment).

Try to see if he REALLY needs the cash now or if just wants out from underneath it.