utilizing seller concessions for a brrrr deal

[David Hertz]

Hi, 

I plan on buying a multi family that needs an $80k rehab.

The purchase price will be $200k - cash.

Has anyone ever used seller concession for the purchase price? In other words, if I buy it off him for 280 and he does a concession of 80 for repairs, then when I want to take a loan in a few months, I'm hoping to avoid the 6-12 month seasoning period. If done successfully, my theory is I should be able to get almost 100% financing, because the ARV will be approximately $350k.

Has anybody ever used this strategy? Thanks.

[Russell Brazil]

Quote from @David Hertz:

Hi, 

I plan on buying a multi family that needs an $80k rehab.

The purchase price will be $200k - cash.

Has anyone ever used seller concession for the purchase price? In other words, if I buy it off him for 280 and he does a concession of 80 for repairs, then when I want to take a loan in a few months, I'm hoping to avoid the 6-12 month seasoning period. If done successfully, my theory is I should be able to get almost 100% financing, because the ARV will be approximately $350k.

Has anybody ever used this strategy? Thanks.

The better option here is to pay your contractor at closing on the HUD. Then you can do a cash out refinance based on purchase price plus rehab costs. Listen to episode #301 to better understand this strategy.