Seller will work with me but I don`t see the exit...

EdRenkema

New Forum Member
Registered
I have a tnhs thats listed on Property Guys in Hamilton ON, seller wants to cash out (preferably). Currently rented to 4 individuals for $1500 p/mo roughly, asking $155K, he'll probly take 150, P taxes $1800/yr and condo fees $300. I haven't seen it yet, but apparently has 3 bathrooms and 1 full kitchen + extra fridge. Seller lives out of town, is semi retired, lives in Florida for the winter and would like some cash to pay off a short term loan. He is amenable to potentially an Agreement For Sale but wants to run it by his lawyer who will likely kill the deal if unfamiliar with the strategy.

I can see few different ways to get in but don't see the exit strategy...



Any ideas would be appreciated.

Thanks
 

CarrieKoch

New Forum Member
Registered
I'm starting to see rent to own might not always be the easiest option. Sometimes it's nice to get in with little - no cash and NO mortgage, NO partner required. And if the payments work, just rent it out.



I'd just keep renting it. We are doing this in Orillia on a triplex - adding value, making cash flow, paying down the mortgage. We just did this in Barrie - small down payment, amazing cash flow and equity and we'll flip it to a buyer when the time is right.
 

WadeFenner

Inspired Forum Member
Find out how much the seller needs to pay off his little loan.



Get under contract on an Agreement for Sale to buy. Sell to existing tenants with a modest option payment, supplement it a little if you need to - use their down to you and a little cash to pay the seller what he needs to pay off his modest loan. Agreement for a few years minimum and at a low loan rate.



If he has no mortgage or very low go for interest only payments to keep your cost very low but sell on a PITI to keep your in-coming payment high.



By paying on a low interest rate and charging more you profit.

By paying interest only and charging principle & interest you profit.

By paying on a loan that is smaller to the seller that what your buyer is paying to you, you profit.



Bring in a JV to cover your cash out of pocket & to put a little in your pocket.



Win win win
 
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