Best way to structure the deal - Posted by Ken
Posted by Ken on March 14, 2000 at 09:16:25:
I have a lady that called on my recent ad, “I buy houses and mortgages”.
Collateral: Mixed use property (gift shop for 20 years)
Note: 1st $165,000 (only financing on the property)
Term: 20 Years (no balloon)
Month Pymt: $1,329.22
First Pymt: 4/1/93
Next pymt due: 4/1/00 (never been late, AA Credit)
Remaining pymts: 162
Remaining Balance: $135,165
Sellers Situation: 66 years old, took back the note when she sold the business. Does not need the money, but is tired of collecting payments. She wants to know what I’ll offer her for the note cash today.
I would like to yeild a min 24%. In order to do that I would have to offer her $63,773 for her $135,165 note. I understand time value of money, but that sure sounds like a steep discount.
Any recommendations on a better way to approach the seller or perhaps a better way to structure this deal?
Thanks in advance for any help!!!