Quote from @Mitch Messer:
Quote from @Chloe Hohman:
My husband and I were recently connected with someone who would like to sell their townhome off-market (to avoid realtor fees, specifically). They owe about 80k on the property. Asking 240k for the property, but plan to up the asking price to 250k if/when they put it on the market this summer. They have tenants in the property who want to stay another year (until next August). My husband and I would like to propose some creative financing options...potentially offering a lease-to-own style option? While we have liquid to do a 5-15k downpayment, we'd like to use a minimal amount of our own money.
Seller is not in need of a lump sum of cash, and has said they would be open to monthly payments as a financing option. However, neither ourselves or the seller have experience in this kind of deal, so understand we will probably want to loop in legal advice as/if we proceed. Any advice is appreciated!
Sounds interesting!
I'd love to help y'all think this through, but a bit more information is needed:
1. Where (in which state) is the townhouse located?
2. What are the terms (payment amount, interest rate, duration, etc.) of the existing financing?
3. What rent are the tenants paying, and is it at-market?
4. What's the age and condition of the unit?
5. Is this a condo, or is it owned fee-simple?
Once we know this, we can then explore options!
Hey great questions!
1. The property is in Virginia
2. Don’t have the current terms but can get them
3. Tenants are currently paying $1500, which is at-market or slightly under (based on comps and location I think we can pull $1600-$1700)
4. Unit was built in the 80s, moderately updated, well maintained by the sellers. HVAC unit is approx 20yrs old.
5. Property is an owned fee-simple and a townhome comple
Thanks for the question & would love to hear your thoughts!
