Posted by Michael Morrongiello on November 19, 2000 at 21:57:59:
As you have outlined, you can sell this home to either and investor or to an owner user(an owner occupied type buyer. A “retail” buyer who is buying the home to live in it will bring the best dollars for you.
However the issue that is probably going to come into play if you decide to go that route is the issue of what the home will appraise for “as is” without it being finished? A firm that is going to invest in buying the seller financed “paper” (our firm is a principal buyer for this type of paper) will want to make sure the home’s value can be supported, that the home is liveable, and that the work yet to be done can be completed prior to the closing.
It may make sense to get the work done now, or to build in an allowance ($2K +/-) for the work to be done into your sales arrangement with any prospective buyers.
Obviously the cash money down from the buyers, their employment, stability, overall credit profile, credit scores, and actual note repayment terms will all come into play in determining how much you will be able to collect from the sale of the seller financed note.
With the right “structure” to the note transaction, it is not unusual for you to be able to realize somewhere in the low to mid 90% range as a cash payout for a properly set up 1st lien note.
To your success,