Posted by Dennis on June 08, 1999 at 07:35:49:
I get the impression that she wants to get rid of the management headaches of this property, although as I’ve learned, her price does not reflect it.
I’ve taken a reasonable comp of $135 and have structured three offers ala Ron LeGrand.
1.) $87,750 all cash
2.) $1K down, 101,250 in 6 months
3.) $115,250 purchase price with 10K down and owner carry of $105,250 at $625 a month until paid. Mortgage to be subordinate to new financing.
Since there is but 5K on a first, I figure I can get a new loan for around 20, pay her 10, use 3 for fix-up and still keep 7K. Notes total 105,250 and and 20 for 125,250 total. House is worth 135K fixed.
But what happpens with the 5K first. It’s probably a fully assumeable balance of a note from a long time ago. Does she pay off the 5K balance with the $10K down payment? Or, do I buy on a wrap-around or all-inclusive trust deed if there is no due-on-sale and with a land contract if there is a DOS? I guess in either of these cases the owner carry is $100,250K.