Owner Financing Question
Property is old house in small town near Nashville on quiet street.
Asking price is 45,000, but I think I can get it for 40,000. ARV is 66,000. (All the comps work) Appraisal done in March...60,000.
Less than 8,000 in repairs if that. In decent shape.
Not sure if a flip will work in this case. Profit margin's not wide enough. Thinking about owner financing it at the full ARV or maybe more?? Will take back a 20% 2nd....question is how hard will it be to find a 1st for the 80% if hypothetical buyer is less than stellar but still okay, credit-wise? Sub to or assumption not an option in this case. This is my first possible deal, and if my numbers are correct, I stand to do real well if and only if I can get financing for my buyer. Any offerings??
Your best bet would be to find your buyer and then work around him. His credit and down payment will determine your course of action. Once you have your buyer and the property then its just a matter of putting the pieces together so they fit.
Good Luck,
Kyle
Thanks Kyle..good info and with that in mind...anyone have an opinion on selling during the Holidays. Would I be better of to wait until after the first of the year to complete this deal? I think the seller would go for it, and this would give me time to search for a buyer. Should I go ahead and put it under contract and ask for a closing date in early January?
Fiafa....By all means...I'm seeking education in every area of REI and it goes without saying a private funding source will be needed. Contact me thru private message and we can go from there.