Need Help with Deal Structuring


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  • Jackie suggested I put my deal on this forum, I hope I find the help I need.

    I spoke to an owner who is selling his house for 329K (long island) and I suggested owner finance, he agreed, but these are his terms: (I will keep it short and simple) Two family house (1brm/1bth over 2brm/2bth ) that brings in 3,500 a month
    50k DP
    10 year payment at 5%, balloon balance at 5 years.
    Now these terms don’t work for me at all, it would actually put me in -200 cash flow.

    My terms were:
    50k DP
    Flat fee of 1000 a month to owner over 10 years with a buyout of 160k
    My initial goal is to buy and hold, however, if the market is good after 5 I would be willing to sell.

    I may sound super foolish right now, but I am a complete newbie, all advise is appreciated!
    I believe I can still strike a deal with the owner if I/someone can come up with something creative, any and all suggestions welcomed.

    Thanks,
    Cookie

    HI Cookie

    More information is needed to be able to formulate offers for this house.

    What is it worth?
    Is it occupied by renters? if so, what is the rent?
    Is there a mortgage? if so, what are the payments? Is that PITI? Are they current?
    Any deferred maintenance?
    What are taxes and insurance

    Once we get this information, we can help.

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