2 Offers Today

2 Offers Today

I'm readying 2 offers today and wanted to share a few of the details with everyone. Offer #1 is a 4 unit listed for $180k, comps in the area are $220k. This is a somewhat straight forward transaction in that it's listed through a realtor, and there is a mention of some seller financing in the listing. I drove by the place and noticed a "for rent" for one of the units. Called that number and was able to speak to the owner directly. He stated he would hold a 2nd for about 20% of the purchase price. Here are the keys to this transaction: build relationships with local banks that will hold the loan in-house. I have a few that will allow me to finance 80%, and with that 20% seller financing - no money down. Cash flows $900 per month. I always ask the seller to contribute $2500 toward my closing costs. AND - when I asked reason for selling, he said he's retiring and has 5 more like this he wants to sell one per year!! Drawing up the paperwork on that now! I'll start a second post for the other offer as this is getting long - Tom


2 offers

Good luck and the way to go !! We all can do this !


2 Offers

Congratulation's Tom! This sounds like a real gem. Much success to you..........Lubertha



Good luck

Sounds like you are on your way, bank and seller financing! Sounds good to me, keep us posted.



This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams

Bruce Springsteen

Sounds Awesome

Is it difficult to qualify for loans at 80% if owners are willing to carry a second at 20%. Are their any restrictions and do I have to have great credit to make something like this work for me? Thanks!


"Faith is the Substance of things Hoped for, the Evidence of things not yet Seen." "Hope Till Hope Creates!"

Seller Financing & Local Banks

Thanks everyone for the kind words! It's currently fairly difficult, if not impossible for a bank to allow seller financing if it's not a bank that keeps it "in-house". As mentioned in other posts on this site, that's why it's so important to build relationships with local banks - those with a few branches. In that case, they usually bring the deal to their board and can approve it, and the local bank will always service it (in-house). For larger banks such as Bank of America, Citibank, mortgage brokers, etc, their loans are sold on the secondary markets, and therefore it's much more restrictive because they have to conform to rules such as minimim credit score, downpayment, etc. With local banks and multi units, it's also analyzed much more on the income and expenses of the property itself. In the deal I'm working here, I'll probably offer $160k on a deal worth $220k. I'm going to ask the bank for a loan of 80% of that - or $128k, on a property worth $220k. With numbers like that, the bank won't care so much if seller financing is part of it - because they have a 1st mortgage at roughly 50% of the value of the house, so they're covered! Hope that helps - Tom

Update on Offer #1

Quick update - holding off on this offer at the moment because submitted offer #2 for a REO yesterday. Using the same bank for both, but the REO has better numbers. So want start with that one and supposed to have an answer on the REO tomorrow...


Congratulations on taking action with these offers. It is nice to hear what other investors are trying with some creative offers and the deals they may soon make. Please keep us updated on your progress. Sometimes every offer we make will not be accepted but it better prepares us for the next offer we make. Also, sometimes you do not know what you will get if you do not ask. Good luck on all your offers and deals! Believe and Achieve! Smiling - Joe


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