First Try at Creative Financing – Need Help Structuring Seller Finance + Private$/HM

[Doane Cole]

Hey BP community,

This will be my first attempt at using creative financing. Like many investors right now, I’m realizing that finding deep discounts in today’s market is tough. So I’m looking at seller financing and possibly sub2 as more realistic ways to get into my next deal.

I’ve put together some hypothetical numbers based on what a wholesaler might bring me, and I’d love some insight on how I could make this deal work using little to none of my own money — and ideally walk away with some cash at refi.

Here’s the breakdown:

Purchase Price: $350,000 (seller is open to carrying the note via seller financing)

Down Payment: $60,000

Renovation Budget: $50,000

Wholesaler/Finder’s Fee: $10,000

Exit Strategy: Refinance after renovation and seasoning, ideally pay back all involved parties and hold as a rental

So I’m essentially trying to figure out:

How do I structure this deal with private or hard money to cover the down payment, reno, and finder's fee?

Is it realistic to borrow all of that upfront, use seller financing for the rest, refi later, and pay everyone back?

Has anyone done something similar and walked away with cash at closing after the refi?

I know there are a lot of moving parts here, and I’m very open to being coached or corrected. Just trying to get my head around how investors are putting these kinds of deals together.

Thanks in advance for your help!