Nathan Payne and his partner Corey proposed buying a pre-foreclosure house for $145,000 using seller financing instead of cash. They'd cover the seller Joe's $14,000 in arrears plus $5,000 for moving costs, with a balloon payment in a few years for the remaining $30-$40k equity, and gave him four months to find new housing.
Corey, my business partner, he had done lease options in the past and he knew about seller financing, like creative financing. So we said to Joe, we're like, Joe, the only way we can get you $145,000 because the house is not worth that in its current condition, the only way we can do this is if we do it on terms. We can buy the house for that price, we can pay that, but you got to take payments. And he's like, well, if you can get me that money, if you can get me my purchase price, that's fine. And we explained to him, okay, so this is what we're going to do. You're in pre-foreclosure, you're behind maybe $14,000. We're going to catch your payments up and we'll give you about $5,000. So you have enough money to move. Out. He's like, that's fine. And we said, we're going to do a balloon payment and cash you out in a couple years for the rest of the equity you have. Okay. And there was like maybe $30,000, $40,000 equity he had, but he was like, yeah, as long as I get that higher price, that's fine. So we agreed on that and it was in the dead of the winter. Okay. So, and he was a little older and he had his family in there in the house. So we were like, hey, we're going to give you 4 months to move out. Okay. We're going to give you 4 months to find a place. We're going to give you 4 months to look for something and pack up.
Why Traditional Wholesaling Keeps Failing You (Use This Pre-Flip Method Instead)
