RC,
Its not the only time my name has been butchered or mispelled so don’t worry.
If you’re intent on borrowing $80,000.00 and placing a 1st lien against the property then you will probably have to make certain your sellers undertand that the $80,000.00 they are to hold is a subordinate 2nd lien mortgage and would be inferior to the $80,000.00 borrowed against the home.
The best bet would be to see if any mortgage lenders would simply originate that $80K loan for you. WIth your down payment and the sellers willing to take back a $80K 2nd lien obtaining such a mortgage loan shouldn’t be too hard.
As for placing these what sounds like unsophicticated sellers in 2nd l ien positon make CERTAIN you perform on their note and and the other mortgage. I have seen far too many sellers taken advantage of by deal structuring like this where the intent of the property buyer was not very honorable. Don’t ruin it for the rest of us, MAKE THOSE PAYMENTS!!
If you find that you cannot readily obtain an $80K 1st lien mortgage loan then call us as an alternative option would be to have the seller take back (2) two notes. A 1st lien note which we would purchase and convert into immediate cash to them along with the $80K 2nd lien note they are already going to retain.
I have quite an opportunity on my hands. I’m in the process of finalizing a deal that is quite lucrative for me. Long story short, the long time next door neighbor of my parents is selling me his house. He owns it free and clear. The most recent was a tax assessment in 95’ for $180,000.
He is selling it to myself for 95,000 with 15,000 down payment and the remaining 80 @ 8% with a balloon at 10 years. The incredible part is he is willing to take his 80,000 as a second. Consequently I would like to put a first on the home and reinvest in other properties. Can I do this and if so how? And what is the most efficient way of doing this? Should or can I go conventional lender or what or would this be something for an institutional note buyer. This is sort of like a refinance I guess, so I’m relying on the experts do create a plan for me to pull the most money out of this deal as possible.
Re: creative financing ideas from the experts! Moriengello, Behle,etc - Posted by Potash
Posted by Potash on December 12, 1999 at 02:06:10:
If it is me I would just be grateful that the guy is selling me his house for 50% of market value. I would not be trying to negotiate finanacing terms that might cause him to reconsider the sale. (I am assuming he owns the house free and clear).