All Forum Posts by: David Duval

I'm going to try and convey to the seller that they will net more if they do seller financing. They don't want to make repairs or have to deal with selling the property because they live out of state. They would likely struggle to sell the property for greater than 170k and that's before selling costs and whatever repairs they would have to make to sell the property.

So purchase price would be approximately 160k(hopefully less) and the seller would carry back 160k at whatever percentage interest we agree upon with a balloon in one year and no prepayment penalty. Interest only payments and no payments for one year.

Sound good?

Thanks for walking me through this Justin and Bill. Much appreciated

If the seller does finance can I use my states' board of realtors purchase agreement to get this in writing or should I use a different contract?

So today you would pay 160k and have seller carry 160k at 10%(hopefully less) and then you would pay for the whole rehab and sell the property?

The seller would be on title, so how would I ensure that I got paid at the close of escrow and should I take a fee of 20k or should it be more performance based?

Thanks for responding

I'd like to make at least 15k on this deal if possible. What do you guys think about seller carry 160k at 5% for 1 year, no prepayment penalty and then I come in and rehab for 30k? I would be selling the property myself(i am a licensed agent)so selling costs and property taxes would be ~13k of the 225k sale. Essentially I would be managing a rehab and then selling the home as an agent. So that leaves about 15k in profit but how do I write a contract that ensures I get paid(besides the listing agreement)?

I feel like there is a deal here because the seller has so much equity and wants to sell( unfortunately doesn't need to sell).

Any ideas would be much appreciated. Thanks

Wanted to say thanks because I've learned a lot from reading this site the past few weeks and look forward to giving back in the future.

I just got a lead off a direct mailing campaign and the owner owns the property free and clear. ARV is about 225k and the seller thinks the property should sell in the 180k range. The property needs about 25k- 30k in work. The seller expressed interest in carrying back the financing and knows that I want to flip the property retail. He also expressed interest in taking some of the post flip profits in exchange for providing the financing.

If I were to buy with hard money or my own cash I would want to buy for around 130-140k but there is a chance that I could have no money in the deal with the seller carrying so I could pay a lot more.

What would you do and what's fair to the seller?

Thanks for your responses.

Great answer J Scott. Thanks

I have the cash to purchase most of the properties that I want to make offers on and I also have a preapproval letter from a reputable known HML that says that I have more than enough cash for their required down payment and that they can close in 10 days. I want to use hard money to finance the majority of these deals but I know that cash offers hold more weight.

So would you structure your offer as cash and provide proof of funds for the purchase price but then ultimately use hard money or would you be more up front and show proof of funds and the letter from the HML and structure your offer as financed?

Thanks for any replies.

Thanks for clarifying Will

In southern California I've seen a lot of successful flippers (tony Alvarez, will Barnard, Curtis gabhart, etc) go this route.

Hi,

Over the past week I have done an a lot of reading on this site and learned a lot(thank you all).

I see that most of you recommend having the listing agent submit your offer so that they can double dip and many of you also recommend relisting the fixed up property with the same agent when it's time to sell. Is this a triple dip and how much commission is the original listing agent getting from you? Just the 3% on the resell? Sorry if this is basic. Thanks for your time.