Re: does anybody see any $$ to be made in this deal? - Posted by Jim IL
Posted by Jim IL on April 24, 2000 at 23:54:04:
Funny you should ask this today.
I am just now dealing with a property in that very same situation.
I had it L/O’ed to me, and then L/O’ed to a T/B’er.
The problem is now that the T/B’er wants to exercise WAY ealrier than expected, and the appraisal is coming in a bit short.
Also, the lender is only loaning my T/B’er 95% of the purchase price or appraisal whichever is lower.
But, we came up with this, and the lender already has agreed to let it close.
I am going to hold paper on a small second.
This way the buyer gets in now, I get most of my cash out, and still have some control over the situation, plus a small cash flow.
I can also sell the second if I choose for a major discount and get cash from it. (although I plan to just keep it, and HOPE they default, and I’ll get the home back.)
But, try that if ever faced with this.
you can always re-write the agreement for a lower price to match the appraisal.
The only thing the buyer will care about is when they can “own” the house and how much it will cost monthly.