Flip for Profit

As you may have heard in my BiggerPockets Podcast episode, I am a big fan of seller financing and leveraging. My favorite way of buying real estate at the moment is via seller financing (but it doesn’t mean that I only want to buy real estate this way.) I am also a fan of selling real estate through seller financing (also known as an “owner carry”) as well. During a depressed market, I strongly believe in leveraging when it comes to buying – but at some point, you have to consider selling also. When it comes to selling real estate by carrying paper, it can be real fun.

So let’s examine a possible seller financing sale I am considering:

The Two Bedroom Condo

I recently purchased a 2 bedroom condo with all cash in Las Vegas for approximately $65,000 after all closing costs (which is painful because 2 years ago I could have bought it for maybe $40,000 or less). Nevertheless, it is still a good investment – since as I am typing this, I actually have a renter looking to move into this condo for $695. Let’s just roughly call it a 7.5% cash on cash return. Not “mind blowing cool,” but hey, I am waiting for this condo to shoot back to $150,000 one of these days.

In any case, given what I know in the Vegas market – where finding inventory is super hard – I began to think about “what if I flip this property via seller financing?”

Despite the fact that I absolutely hate selling my real estate way too early before another super bubble comes around, I might consider it if I can recoup most of my capital invested.

So what are my terms? I want to sell this condo at $90,000 via seller financing and I …read more