All Forum Posts by: Account Closed

Going into my first meeting to pitch the seller on the idea seller financing to give them the option to collect more cash.  I do not want to disclose this is my first think so let me know if I am missing any details.

Scenario $87,500 sale price, offer 10% down and 12% interest.  So they get a check for $8,750 at closing and monthly interest payment of $787.50 ($87,500-$8,750=$78,750 loan)

We sign a purchase agreement stating a seller financing option and take to a title company to complete the necessary paperwork to transfer the deed.  At the point of resale or refinance his loan will be paid in full.

What other items should I be considering to explain the this option?

Thanks everyone for the advice. The lenders I was calling were telling me 12 month seasoning period if I wanted to count any forced appreciation.  I will call Finance of America.

Anyone using an Indianapolis bank that has a 6 month seasoning requirement when doing a Brrr?

@Evan Polaski

Thanks. We ended up have two more more conventional offers and the highest did sweeten the deal by saying they would pay $5k over appraisal.

Thanks for all of the comments!

@Will Fraser

thanks I was wondering what the hot button items were for FHA all cosmetic items are new and it is a slab on grade. But I didn't put a new roof on or update the mechanicals

I am selling a house and have 11 offers. The house was listed for $170k. Leading two offers are below. What would you choose or counter?

$180k-FHA loan 3.5% down no request for warranty or closing costs. Buyers agent offered to reduce to 2% which adds $1800. The also offered to pay the remaining taxes of about $3k

$185k-Conventional loan 5% down no request for warranty or closing cost.

Main concern is that it does not appraise for $185 it might be possible to get an appraisal of $180.

My thought is to ask the conventional loan to cover up to $7500 over the appraisal and if not take the FHA offer.

What do you think?

@Deuce Thevenow

I am currently looking for my first flip and getting approved with MM Lending and CPL fix and flip loans.

Thought about a partner? I can offer contractors and construction management experience and possibly rehab costs. Let me know if you are interested.