BUYING A HOME TO LIVE IN - Posted by TIM

Posted by Sean on May 09, 2000 at 23:57:01:

Since you have Realtors involved you need to come up with some cash for the Seller so he can pay them. This can be easy to do if the Seller has a lot of equity and hard to do if the Seller has little equity.

Let’s assume, for the sake of argument, that the Seller owes only 10% left on the property. Give the Seller a first for 30% of the purchase price and a second for 70% of the purchase price. The first can be sold generating enough cash for the Seller to pay his Realtors and closing costs.

I would definitely recommend that you stipulate that the Seller pay all closing costs.

BUYING A HOME TO LIVE IN - Posted by TIM

Posted by TIM on May 09, 2000 at 16:34:42:

I’M TRYING TO PURCHASE A HOME FOR THE FIRST TIME TO LIVE IN. I AND THE SELLER BOTH HAVE REAL ESTATE AGENTS NOT TOO FAMILIAR WITH OR WOULD RATHER AVOID, IF POSSIBLE, CREATIVE FINANCE. THE SELLER IS “VERY MOTIVATED” AND IS OPEN FOR ANYTHING THAT WILL CLOSE THIS DEAL. I HAVE A COUPLE OF QUESTIONS IF ANYONE CAN HELP ME. MY WIFE AND I “REALLY” WANT THIS HOME TO LIVE IN.

  1. HOW CAN I TIE UP THE PROPERTY?
  2. HOW CAN THE AGENTS RECEIVE THEIR COMMISSIONS QUICKLY?
  3. HOW CAN I RECEIVE TAX BENEFITS IF LEASE/PURCHASE IS AGREED UPON?
  4. A LENDER HAS APPROVED AN 80/10/10 LOAN WHICH REQUIRES 10% DOWN FROM ME (WHICH I DON’T HAVE RIGHT NOW BUT, CAN GET IT) HOW CAN I DECREASE OUT OF POCKET COSTS?
  5. IS IT OKAY TO ASK SELLER TO PAY “ALL” CLOSING COSTS?

I WOULD APPRECIATE ANY FEEDBACK.