Good evening!
I’m writing with a seller financing question in hopes to gain some insight from some investors that have gone this route with previous deals.
I, together with two other new investors, are in the infant stages of vetting potential investment properties. We are looking for at least a 4 unit property but are vetting options up to 15 units currently. I own and rent out a townhouse that I purchased as my primary residence approximately 5 years ago with a FHA loan and put 3.5% down. Through improvements to the property and time it has appreciated slowly but steadily. It is worth approximately $135k and approximately $103k is owed on the mortgage. Our research suggests that refinancing this property isn't really an option at the moment due to the LTV ratios so we can't (or can we?) pull any of the equity from that. One of the other two investors owns her home outright but would like to avoid borrowing against that. The other investor in our triad has no debt but also no assets to leverage.
While we continue to aggressively save for a downpayment (and rely heavily on that as leverage to move forward) and seek private investors, we are also looking into creative financing options, specifically seller financing or seller assisted financing. For those of you that have used this method, what have you found to be successful strategies to working with the seller for financing? What advice can you offer? What percentage of the sale was seller financed?
Thank you in advance!
