Creative Financing, Seller Finance, Wrap, Land contract. 5.5% interest, 40-year loan

[Lisa Herland]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $539,900
Cash invested: $41,425
Sale price: $539,900

ELLER FINANCE OPPORTUNITY! Owner has invested over $55,000 towards the white picket fence, solar-powered gate, exotic plants throughout the front and back yard with irrigation, and a Koi fish pond. The interior has over $150,000 in upgrades and improvements.

What made you interested in investing in this type of deal?

Creative Financing, Seller Finance, Wrap, Land contract. 5.5% interest, 40-year loan

How did you find this deal and how did you negotiate it?

MLS, Watched the price drop, and created a relationship with the owner (agent). We both worked on the creative financing, and found a title company that could service the deal.

How did you finance this deal?

Seller finance, Wrap, land contract. 10% down, 5.5% interest 40-year loan.

How did you add value to the deal?

I created a relationship with the seller, and we both worked on the deal until it was done.

What was the outcome?

Great!

Lessons learned? Challenges?

I had to learn how a seller finance, wrap, and Land contract deal is done. It was a bit challenging and new to me. But nothing like doing it to learn it.