Creative Financing On A Rehab
I posted this in the rehab forum and no one responded.
I have an opportunity, for the first time, to do owner financing on a rehab property. I need some help structuring the deal.
Here are the details of the property:
1. Purchase price is $93,000
2. Based on good comps, after repaired value would be $115,000
3. Current mortgage on the property is $54,000
4. Property needs 5-8k in rehab
The owner (a church) is open to financing 100% of the deal. We have not talked about specific yet, however, the idea of 100% financing of a 30 year note with a 5 year balloon payment has been discussed.
My big question is: Where can I get the rehab money without coming out of pocket?
The other thought was to have them sell me the house for $54k and I would get a conv. mortgage for that amount and then have the church take the 2nd mortgage for the difference- $89k. I am not sure where the rehab money comes from in this scenario either???
Please lend your creativity.
Thanks
[ Edited by brettjamesburas on Date 12/13/2004 ]
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