Creative Financing Seller "Refi" for Takeover

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Seller “Refi” for Takeover

This no-money-down technique is as amazing as it is simple. Ask the seller to refinance the property for your offered price,  (for 30 years fixed at no more than X%) subject to a one-time qualified assumption by you. Take over their loan at closing. The seller walks with cash, and you buy with no money down!

If a seller has equity in the property and has been unable to sell it, ask him to get a loan on it, let all parties know that once the property is refinanced, you are going to assume the mortgage with a release of liability for the owner.  

An alternative; the seller pulls as much cash out of the property from a refinance as he can and the investor takes title subject to the new existing financing.

The seller has the cash and the investors has the property.

Another alternative ---- ask the seller to give you X$ for repairs at time of settlement.

Another alternative ---  agree to give the seller a Hybrid bonus once the property is sold....10- 20 - 30%.

The hybrid usually works when a seller is accepting less than what he wants and the informal  partnerships works great.

Charles

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You need to make financing  arranged in advance, if there is equity in the house, credit is approved....you have a good chance of making this work.

If you can not find a bank to do a qualified assumption with release of liability for owner, after seller gets his refi loan, you could do a contract of sale with right of possession and a delayed settlement subject to existing new financing, seller takes his tax free loan money, you make the payments. Make sure you have a deed held in escrow so there are no issues when it is time to transfer the property to your name (in 5-7 years).

Charles