Owner Financed - single family home - interesting deal

[Sean Maloney]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $45,000
Cash invested: $23,000

Owner finance - Creative deal, will describe some of the details here but if you are interested in the full story I'd be happy to share more.

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

The opportunity

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

There is more to the story but basically a Facebook friend posted a sink for free that was replaced at his moms house. I was able to use the sink at one of my apartments so I sent him and his mom a message thanking them for the sink and said in the message if you know anyone selling a house or if your mom ever decides to sell her house let me know. 2 weeks later I got a call from his mom and 90 days after that we were signing closing documents.

How did you finance this deal?

It was a creative deal but basically I paid off the existing balance on her home loan and all other closing costs and then we set up payments of $250 a month for 8 years for the balance. There was some other negotiations involved but that's the main piece of it.

How did you add value to the deal?

I solved some problems and in return got a property for 50% of its ARV

What was the outcome?

Due to the unique agreement that I came up with she is still in the house at the moment of me typing this. I do have plans to make this a mid-term rental or a lessee option or a normal rental house when she moves out.

Lessons learned? Challenges?

Be creative, solve problems, help others with what they need out of a deal, be patient and flexible with time frames.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Just my attorney