This 2021 construction is a brand new property in great condition that we were able to buy and take over the seller’s 2.3% interest rate. We turned this property into a long term rental property.
Proven Track Record
Seller Satisfaction
Every Month
Acquisitions
The Challenge
The seller bought this property in 2021 with an FHA loan and only put 3.5% down as a down payment. In late 2022 he hired a real estate agent who listed the property for $350,000 on the MLS, however the listing had to be taken down after a few weeks as no serious offer was received.
Since the seller wanted to move to Phoenix, AZ to be closer to his fiancé he tried to sell the property so he could buy another property in Phoenix, AZ.
Due to the fact that he bought the property with a low down payment and also needed to take out a second mortgage he really did not have any equity to sell the property.
If he would have sold the property with a real estate agent he probably would have to cut a check at closed in the amount of $20,000 to just sell his house, pay all closing fees, and then pay off the existing mortgage.
How Did We
Help The Seller & Agent?
Our acquisition department contacted the seller and in a few conversations were able to extract the information we need in order to present a solution that is a win-win situation for every party involved.
We structured a deal where we would take care of the existing tenants, pay all closing fees, and then also pay the seller $20,000 at closing which the seller will use as a down payment on his new property in Phoenix, AZ.
The seller had a condition that we would take care of his tenants as he had already given them his word that they would be able to extend their lease and we had a few conversations with the tenants and came to an agreement that would honor their wishes and allowed them to stay at the property.
We structured a deal that would allow the tenants to stay in the property, the seller was able to move to Phoenix, AZ and buy a new property with the cash we paid him at closing.
The Results
- We paid all closing costs
- We took care of the existing tenants
- We paid the sellers $22,000 cash
- We bought the property subject to the existing debt staying in place
- The sellers was able to sell his house and move to Phoenix, AZ with his fiancé and start a new chapter of his life
