Fish On ??? - Posted by Jay

Posted by John (WA) on September 29, 1999 at 12:52:42:


There are many possible ways to do this deal. Since there are no agents involved, talk to the seller and feel him out to see if he would be receptive to something besides an all cash offer. Remember too that all cash does not necessarily have to mean all cash today. Perhaps he would be happy with half cash today and the other half in the next 12 months. Do you have any cash you can use to work with?

Some suggestions:

  1. Create a lease option deal with cheap rent with you putting up the money for fixup. Either your money or find private funds.
  2. Hard money loan to cover a substantial down and fixup costs, seller to carry short term second.
  3. If the house is not in too bad of shape, just needs yard work, carpet, paint and minor repairs, create a note and sell it for cash. See J.P. Vaughan’s article on “How to create your own mortgage”

When negotiating the price, remember to include in your offer the cost of the money + holding costs. Sometimes it’s better to offer more to the seller if they will help you finance the deal. You may need (and want) to present him with multiple offers at the same time.

Hope this helps.

Fish On ??? - Posted by Jay

Posted by Jay on September 29, 1999 at 10:04:03:

Got a call from a letter I sent out to the owner of a vacant home…They are interested in selling, but interior of home is stripped (No carpets, No kitchen cabinets…). I ran comps and figure FMV to be 85-90K…Seller wants 60K as is, I’ll offer 50k or so…I think I’ll do the rehab on this one… I’m looking for creative financing solutions to this. I don’t want to put any money down and I don’t think a lender would lend on a home with no kitchen…Should I ask the owner to carry a contract until I resell? Any creative financing suggestions/opinions will be appreciated…


Jay in WA