Posted by B.L.Renfrow on December 11, 2000 at 21:43:00:
Depends what your seller’s motivation and needs are. Once you find that out, you’ll be in a better position to structure offers.
Have you talked with your private lender about a 12 month principal and interest balloon payment? Might be an option, if you’re sure you can get the rehab done in that time, and if your market will support a quick sale.
If so, does your hard money lender lend based on ARV, or on as-is value?
Brian (NY)
Owner finance sweetening help? - Posted by Brad (GA)
Posted by Brad (GA) on December 11, 2000 at 18:17:37:
Ok you guys, here’s the deal.
Put numerous bids in and seller will not come down.
Purchase price 145K
Rehab 45-50K
ARV 250-275K
My objective is to rent. My private lender offers 10pts, 14.5% and 2K closing. My conventional lender offers 1pt, 1.5 over prime and 1500. closing ( and paperwork, bloodtest, urinalysis, life story, etc., etc.)
Here’s what I offered: Owner carry finance for six months, 0% interest. (I’m hoping to introduce the idea of owner carry) These terms are very negotiable.
This particular duplex has been on market for 5 months and has been abandoned for about a 1.5 years. I want no payments until rehab is done.
With this current offer, what should I do to induce the owner to sell. I need some options on how to sweeten the deal and still get owner financing with no monthly, or very little monthly payments.
Any help would be great!