All Forum Posts by: Brady Faigl

I have had my eyes on a property in Boise for a few months now, it has been on the market for quite some time and definitely has its quirks. I really think I can make a seller financing deal work but my agent does not seem to agree... she claims that a seller finance deal will not work unless I have 40-50% down and offering above market interest rates. This is very different that what I am seeing and learning online about sellers financing. I feel like ever since I have started my real estate journey, I keep hearing the phrase "You don't need cash to buy a house!" - especially from that Pace Morby dude. This seems absolutely opposite of the case. Does someone have insight here? For those interested in helping more - here is a breakdown of the deal:

Asking: $798,000

My agent has estimated it is worth closer to $675,000-$700,000

This is an estate situation, they own the home outright and have some renters so are cash flowing a bit. They seem to not be in a hurry to sell and have kept it on the market and rejected 4 lower offers - obviously looking for their premium price. The son (1/2 owner) has expressed wanting his money upfront and told his agent it's a no to seller financing. However, I hear that a lot of seller financing negotiating is also educating sellers on options. I would want to propose a 2 year term balloon payment situation that would allow the family to clear out of their estate situation and walk away with a net that is closer to asking than anyone could have offered. The caveat here is I would require low interest rates and 0-7% down on my end - it is all I am able to make work to get them closer to what they are asking for.

I am in the treasure valley as well. This situation does sound tough when it is is a family (2) making the situation and they do not have a pain point or motivation from what it seems. Not knowing there story seller financing is of course a great option for you and it can be a waiting game and educating the seller not the seller's agent. Seller financing should not be the market interest rate and does not need to have a large down payment. Seller Financing is making a win win for both parties. If they want price then you get terms. Feel free to PM Id love to get into more detail and see how to make something happen.

0 Votes

Boise, Idaho

Casey,

Congrats on the equity, and love seeing a big family like yours!

First off keeping that low of an interest rate in your current home whether you stay in it or turn it into a rental is something to try and hold on to of course. There are a few options to make that work and still be able to use the equity without affecting the interest rate, although if you can cash-out refinance and keep a low payment then use that cash for a rental property it could make sense long term with if you find some great deals. There is opportunity there to leverage your money and purchase multiple rental properties with that amount of equity.

I Am in the Boise Market and it can be difficult to find anything with substantial cash flow with current rates and prices. I have a STR that does well and it has a similar rate to yours. Depending on your home you could have a high potential there to create great cash flow to cover the cost of your new home or rental and to use the rest for new investment opportunities.

If you did find a home to rent for your family and rent out your current home that can have some benefits to create cash flow right away to then use and save for your next investment properties, so that you avoid having to use a down payment on a new home for your personal.

I would love to help answer any questions I can and find out more details to see how I could help!

1 Vote

Boise, Idaho

Olsen Wheeler CPA is someone I would look into. I use them for my businesses and I chose them for when I begin investing myself.

0 Votes

Meridian, Idaho

All Forum Posts by: Brady Faigl

Brady Faigl has started 0 posts and replied 3 times.

Post: Seeking Advice from People Experienced In Sellers Financing

Post: How best to use $650-850K Equity in my personal Home to buy an income property?

Post: RE Investor friendly CPA recommendations.