How to find Seller financed Buy & Hold SFR property in Metro Atlanta!

[Samuel Abebe]

Greetings,

Many mom & pop Buy and Hold or BRRRR investors often overlook creative ways of acquiring property. Creative means terms vs paying cash! For Buy and Hold strategies, this method is far more superior than traditional financing of properties. I am able to get these type of deals quite easily, and in fact have some available now! Let me give you an example of how these deals are structured:

Seller wants to sell their property, but for various reasons (including cap gains taxes, low ball offers from cash buyers) they prefer to seller-finance their property instead. You step in and offer them a creative finance solution that looks like this: (these are real numbers btw):

Seller asking: $275,000 for 3/2 Single family split level, 1400 Sqft, with bonus room in basement

Your Seller Finance terms as follows:

Down payment: $20,000 cash
Seller carry back financing amount: $255,000
Terms: 5 or 7 year note with balloon @ 2.75% (or any negotiated terms here)
Principal & interest: $867.61 per month (wow!) 
Buyer pays closing costs & loan doc fees: $3,800 approx.
Total Entry Fee: $23,800 to close -- or 9% of the purchase price! <------ Wow!
Turn key rehab: $8K (cosmetic stuff - carpet, paint, appliances, new fixtures and landscaping)

Cash-flow property for 5 or 7 years:
Rent rates in this neighborhood are $1,800+, or $2,200 for mid-term, and $2,600 Co-living

Exit strategy: Due to the 5 or 7 year appreciation cycle, your property is now worth $400K+ *calculators can do this now!
Refi in year 5 to pay off balloon and keep the property longer; Or Sell it outright pay-off balloon and walk away with massive chunk of equity ($140K+)

Return on Investment: Assuming you were cash flow positive for 5 years (99% certain), you turned your $23,800 investment into $140K equity position by year 5. That's a 488% ROI in 5 years, or 42.53% annual cash-on-cash return.

Contact me if you're interested in finding deals like this easily. I literally have this very deal right now...

Thanks,

Samuel A.
FairCap Investors

[Samuel Abebe]

Quote from @Chris Barrett:

Any time you are the lender you have to do due diligence and underwriting. However from a buyer's perspective I'd jump all over an opportunity for someone to lend me money sub-5% at this point. 

 Hey Chris, yes there are principal only (0%) Seller-finance terms too... it's all about how you negotiate with the seller. Also, the other point is sellers will NEVER offer terms, unless YOU are versed in structuring those deals, and what the benefits are for them (and you)! That's the key to unlock the doors of creative finance in general. Most sellers/homeowners only know 1 way to buy & sell, you the investor should have multiple acquisition tools in your tool belt that fit your investment style.