Owner financing, Rehab, Rent, Refinance- how many have done this?

[Samuel Cervantez]

This came to me after doing some reading on this site but I have really heard if its been done or was it successful. This sounds almost like BRRR but with a twist, no matter any input would be greatly appreciated.

[Steve Vaughan]

Originally posted by @Samuel Cervantez:

This came to me after doing some reading on this site but I have really heard if its been done or was it successful. This sounds almost like BRRR but with a twist, no matter any input would be greatly appreciated.

 I have done this 4 times, with  2 7-plexes and 2 houses.  My first 7-plex guy took a $5k discount on a $148,000 refi.  Not the best discount, but we were facing the balloon deadline anyway and it was better than nothing.

Currently in 'negotiations' with one home seller for an early  payoff discount.  My rate with them is 6% over 24yrs straight am.  It has 22 years left.    I figured an 8% discount to get my 'return' to 8% for the payoff.  I'll be self-funding this 'refi', then I can go to a bank if I want to get cash out later.  

By self-funding the payoff AND getting a $7k discount, I am saving $11,000 in transaction costs. Sounds like a couple months of freedom to me!

What's nice about refinancing owner-financed deals is they will at least consider a discount.  Banks won't/can't!