Mike:
Technically you are correct, at the time the AD is being run you would not be the owner of the property. You would have only the right to purchase it from the CURRENT owner who is under contract with you.
However WHEN the actual sale takes place and you are given a deed, you are THEN the owner even if only for an instant. Of course you would then immediatly sell the property to the ulimate “retail” buyers who intend to occupy the home as their primary dwelling and who entered into a contract to purchase the home from you.
IF you are uncomfortable using “Owner Will Finance” in your AD, then use “SELLER will Finance”, in any event you can also always disclose that you are not the owner at this time but will be at the time the home is sold to them as the buyers.
Ok. Talked to owner again. would have to paint ceilings, and put a little linoleum in. Here are the specifics he came up with to owner finance… $50,000, $5,000 down, $399.11 mth. for 240 months @ 8.8% int. Property is assessed at $76,000. Now, here’s my dilemma, I don’t want to lose this because of the potential as you can see. However, I don’t have the $5,000 down and would need a couple months or so to try and get a buyer because I can’t pay the monthly payments on another property. What are my options?? Again, it’s a 2 or 3 bedroom, 2bath, 2 car carport, with almost 11 acres.
Misty:
Oh no, You lack the down payment? …
Is the deal good enough that you could raise that cash some way? (Credit card advance, friends, relatives, a partner, etc.) I would explore that first since the seller sounds like he is ready to deal.
Secondly, if that won’t work then simply sign him up on a contract that is assignable and build in a long time frame closing (45 -60 days,etc.)You can then try to “wholesale” this deal to another investor OR try to market the home QUICKLY using owner financing yourself to sell it to a “retail” buyer.
Michael make very good points. I like and use his second suggestion all the time. In fact, I also negotiate 30 to 60 days before intrest begins. That way my first payment due isn’t till 60 to 90 days after closing. This allows me time to find that buyer and I point blank tell the seller. I get little resistance, if the deal meets their other needs. And if I find the buyer sooner… It’s just a little more money in my pocket.