I am trying to lock-up my first deal and need some suggestions.
I have found a 3 bedroom 1 bath home in an economically depressed area. The home is for sale through a realtor. It is not an REO or foreclosure. The seller claims to be motivated to sell and is asking $32,500 for the home. The home basically needs some paint and carpets cleaned to move in. I am actually considering this property for my own residence. Since I am going to be relocating there for work. Also, I recently was divorced so my credit and cash needless to say are depleted.
Here is what I have proposed: $0 down 24 month lease purchase with an assignment clause. At the end of the 24 month period, I would refinance the home and pay them off. They have come back and said the will consider owner financing but they would like 20% down. Right now I do not have the 20% down.
One thought I had was to see if they would consider a promisory note for the $6500 at a 5% rate off return.
Colmments and advice would be recommended.
Second option, to offer more for the property in lieu of the 20% down.