How to Structure this deal, please advise:

[Andreas Sakellaris]

Hello All,

Thanks in advance for analyzing this deal.

Main two questions would be: How does the Dott Frank Law effect my deal, and how can I work around it or be exempt from it.

Heres the deal:

Currently I have an option to buy a property for the next 6 months at these terms:

10k down, plus 5k over 24 months ($208 x24), plus take over his existing mortgage of 60K...(PITI is around $590) and he is about 8 plus years into his 30 yrs 6.5% fixed.

(Seller already told me he would take 5k down by the end of the month, so I know he is super flexible, I wouldn't mind getting him close to his total 15k over time, but need help structuring the purchase)

ARV is about 85K

Repairs are maybe $300.00

So Im into it for 75K, and would lease option it out or owner finance someone at around 90K. (If I can collect 10K or more)

Property could rent out at $900 a month, so there is cash flow opportunity after the the 24 months of paying the 5K to seller, and their is back end profit to be had.

My previous mentor suggested I lease option NOT subject too the deal and turn around and lease option it out...

BUT

According to Dott Frank, I can no longer give the tenant buyer equity pay down, (which sweetens the deal for me) BUT, doesn't that mean I can't get equity pay down myself if I lease purchases from seller?

Sorry, but I'm confused here on how to structure this?

PLEASE ADVISE...THANKS SO MUCH!

Dre Sak

[Jason Dillard]

Almost always buy sub2. It protects you more.

To me, this is not a deal. There are plenty of sellers out there that won't ask for a down payment with these numbers. The best I would do here is give seller a no payment zero interest 2nd.

Who is making his payment now? Relief from payment is enough skin for a truley motivated seller.