OfflineI recently ran into a property with a FSBO sign in the front yard i immediatly took the # down.I originally wanted to see if this property could be locked up under contract and sold. Upon meeting with the owner I discovered they were flexible and ready to get out of renting.Without even asking the owner said she was open to just about anything and would even owner finance WOW!!!!!!Right now I'm doing due diligence.My question is how hard would it be to get some rab money via private money loans or hard money while not acually holding the deed? Anyone out there had this problem???
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If they do seller finance, you will hold the deed. However, many private lenders are hesitant to be in a second position. If there is an underlying mortgage, they would be in a third lien position.
What is the LTV. Private Lenders, if they would do a loan in a back up position, still want a low LTV (65-75% LTV). Because they want to be sure they can resell it quickly if there is a default and they have to foreclose.
So, find out how much the seller owes on the property. If it is free and clear, that is much better. You might even ask if they would subordinate their note to the private lender.
If you have good credit, you can refinance after 90-180 days at 70-75% LTV. That should take out the private money, which would likely be a very high interest rate. If it doesn't completely take out the seller financed portion, ask them to subordinate to the new loan.
Good Luck,
Jim
if you have a motivated seller, you can easily do a lease option, where you would get a deposit and monthly payments from a prospective tenant buyer; from that $ you would pay a downpayment and monthly payments to your seller, with a balloon payment in a few years when your buyer is ready to get a loan... in the meantime you would make some money upfront with part of the deposit (option fee) and have a monthly cashflow, and then make some more money at the back-end when your buyer buys the property...
Good luck!
Valerie
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Saw a house with sign for sale by owner,really need help here from how to approach or start conversation to close?Help me friends of DG...
Thanks...
Bernadette
Bernadette Manalo