Re: 72yr will sell duplex, How to structure - Posted by phil fernandez
Posted by phil fernandez on December 22, 1998 at 07:37:36:
One thing we don’t know, is there a mortgage presently on the duplex and if there is one how old is the mortgage, what is the interest rate and monthly payment?
If the mortgage has been seasoned for a good number of years, I’d consider doing some type of a wrap where you can take advantage of a good chunk of the mortage payment going toward the principle. This will build up your equity faster, especially if you refinance the deal later, you will have a nice chunk of equity for the downpayment.
You also might want to let the seller stay as a tenant for say 5 years and call it prepaid rent. $650 x 60 months = $39,000. A fast way to build up equity.
Also you could give the seller a life estate rent free. In exchange for this the seller would have to discount his price substantially.
Sounds like your seller might be more interested in peace of mind more than the money. He might not need more than your $2,000. Your $2,000 would show him your committment to the deal.
Talk to the seller and find out exactly what his needs are.