1st deal...specifics - Posted by Misty

Posted by Michael Morrongiello on May 28, 2000 at 13:53:41:

Technically you are correct, at the time the AD is being run you would not be the owner of the property. You would have only the right to purchase it from the CURRENT owner who is under contract with you.

However WHEN the actual sale takes place and you are given a deed, you are THEN the owner even if only for an instant. Of course you would then immediatly sell the property to the ulimate “retail” buyers who intend to occupy the home as their primary dwelling and who entered into a contract to purchase the home from you.

IF you are uncomfortable using “Owner Will Finance” in your AD, then use “SELLER will Finance”, in any event you can also always disclose that you are not the owner at this time but will be at the time the home is sold to them as the buyers.

To Your Success,

Michael Morrongiello

1st deal…specifics - Posted by Misty

Posted by Misty on May 22, 2000 at 22:20:35:

Ok. Talked to owner again. would have to paint ceilings, and put a little linoleum in. Here are the specifics he came up with to owner finance… $50,000, $5,000 down, $399.11 mth. for 240 months @ 8.8% int. Property is assessed at $76,000. Now, here’s my dilemma, I don’t want to lose this because of the potential as you can see. However, I don’t have the $5,000 down and would need a couple months or so to try and get a buyer because I can’t pay the monthly payments on another property. What are my options?? Again, it’s a 2 or 3 bedroom, 2bath, 2 car carport, with almost 11 acres.

Re: 1st deal…specifics - Posted by Michael Morrongiello

Posted by Michael Morrongiello on May 23, 2000 at 13:19:13:

Oh no, You lack the down payment? …
Is the deal good enough that you could raise that cash some way? (Credit card advance, friends, relatives, a partner, etc.) I would explore that first since the seller sounds like he is ready to deal.

Secondly, if that won’t work then simply sign him up on a contract that is assignable and build in a long time frame closing (45 -60 days,etc.)You can then try to “wholesale” this deal to another investor OR try to market the home QUICKLY using owner financing yourself to sell it to a “retail” buyer.

Michael Morrongiello

Re: 1st deal…specifics - Posted by Mike Cadotte

Posted by Mike Cadotte on May 27, 2000 at 15:41:34:

How are you able to say that you will "owner finance’ if you are not the owner, you are only controlling the property with an “assignable option”.

Re: 1st deal…specifics - Posted by Jim

Posted by Jim on May 23, 2000 at 13:40:34:


Michael make very good points. I like and use his second suggestion all the time. In fact, I also negotiate 30 to 60 days before intrest begins. That way my first payment due isn’t till 60 to 90 days after closing. This allows me time to find that buyer and I point blank tell the seller. I get little resistance, if the deal meets their other needs. And if I find the buyer sooner… It’s just a little more money in my pocket.