Thanks Kristine
I am on the fence on this one. It seems like a great time to wait.
Buying at FMV even with 100% financing may be a poor choice.
Our market is trailing Florida by about 12 months so better deals will
be coming soon.
HC
I am considering pulling the trigger on a possible wrap note deal where the seller is financing 100% for 10 years at 6.5 IO. Price is 295K
The building is new, very well built, and in a good location. FMV = 295000. It’s near Asheville NC.
I am thinking of selling it for 325000 at 8 or 8.5% with 10% down.
I am hoping that financing this property will create demand because of the difficulty so many people are having with financing right now.
If I can’t sell and have to rent then it will break even.
It seems like a skinny deal and I may be hanging too much hope on my financing adding value.
What is the value of seller financing in this market?
HC
I’m in Canada (the only country that hasn’t seen its housing market fall apart yet) and even here I’m finding sellers daily who will do 100% financing in the 3 - 4% range (amortizing too) if I pay them 100% of FMV.
So you should be getting much better deals than the one you posted.
Posted by Kristine-CA on July 11, 2008 at 09:32:56:
I’d look at your purchase price and the incentives offered by your seller
here. I think you’ve answered your own question about seller financing
adding value if you’re willing to buy something for 100% of FMV.
You may have to look long and hard for someone with 30K plus for a
down. There are definitely buyers with downs and who need seller
financing. But someone with 30K often has other options available to
them.
In this market you should be able to get a much better deal.
I use an owner finance program that creates a note that the seller can immediately cash out at closing for as little as a 10% discount off the face value. So the owner gets cash and my buyer buys at or very close to FMV.