Getting a 2.75% interest rate in a 7.5% rate environment

While rates are high and many single family homes do not pencil as investments we were able to set up this creative deal structure as a win-win situation for both the buyer and seller. This seller had been trying to sell their home for over a year with no luck and did not want to drop the price of the home. The Seller had $90,000 of equity in the home and a $390,000 loan balance with a 2.75% interest rate. At this point in time an investment loans were around 8% and require 20%-25% down plus loan fees and closing costs. Instead of taking on a typical loan we set up a deal where the buyer wrapped the sellers existing debt and got to take over the low interest rate. The buyer brought $40,000 to cover a portion of the sellers equity and then we created a $50,000 note that the buyer pays down monthly. Not only did the buyer get a 2.75% interest rate but they only had to bring around 8% down to close the deal.