Question on Seller Financed Wholesaling

[Stephen Sokolow]

Hi all,

I have a potential deal that I am trying to put under contract. The ARV is $64,500. The home needs about $25,000 in work. The owner is asking $40,000. They are willing to do seller financing with 10% down, carrying a note for 36k at 10% interest for 10 years for a monthly payment of $475.74. I would like advice on how to proceed. Does the seller financing benefit me if I am trying to wholesale the deal?

[Barry Pekin]

@Stephen Sokolow,

Seller financing makes it more attractive, but this doesn't sound like a good deal.  If you purchase a property for $40,000, then pay $25,000 to repair it, you've sunk $65,000 into it.  There's nothing left.  You're $500 in the hole if you immediately turned around and sold it, and that's not even considering your holding costs while doing the rehab.

I understand you're wholesaling it, but that's what your buyer is going to see.  There's attractive financing, but who wants to finance a loss?