Ed: How can I do this deal? - Posted by Sharee

Posted by Sharee on January 06, 2002 at 18:03:15:

Thanks Bryan & Ed for the advice! I’ll keep you posted on how it goes.
You guys are great!!

Ed: How can I do this deal? - Posted by Sharee

Posted by Sharee on January 02, 2002 at 19:44:09:

I have an opportunity to buy a 3 bd 2 bath 3700 sq ft home in the Blue ridge Mtns of Ga. on 8 acres. The owners are asking 158,000 and are willing to owner finance but they want 30% down. Due to credit problems from divorce I cannot come up with this much cash much less get a loan for it.
The home is in excellant condition and has been appraised at 210,000 according to the owner. Do you see any feasible way to make this happen? The owners have also told me they can be creative with financing but want money in their pocket also.
Any ideas would be appreciated, Sharee

Re: Ed: How can I do this deal? - Posted by Dr. Werner

Posted by Dr. Werner on January 08, 2002 at 23:18:53:

Greetings Sharee

I read the posts here and wanted to add to the great advice here!

I own www.FsboFinancingSolutions.com and we specialize in helping FSBO home sellers offer owner finance terms on their property for sale and cashing out this note at closing. We also offer funds for flipping homes using our system with no title seasoning issues.

With the above said I am assuming you are going to live in the property.

If you are and your credit score is 520 to 559 you might qualify for our 70/25/5 program. I have better programs for better scores. I just showed the worst case to show you even with these low scores the deal makes great sense for all.

Here is what your FSBO seller would net using this financing from us.

We assume the sell price to you of $158,000

70% 1st lien of 110,600 cashed out by my investors to seller at 95% = $105,070

5% cash down from you = $7,900

2nd lien seller held note of 25% = $39,500

Total net to seller $152,470 or 96% of selling price

We have other higher LTV programs for better credit scores on the website mentioned above. But all the programs require no PMI, some are No Doc, some are limited Doc all clearly shown on the website. Also I have programs for non owner occupied deals!

Notice in your deal the seller nets more cash, holds a smaller note and you pay only 5% down!

What is the interest rate on the program I quoted you? 12%! Not bad for the low down payment and allowed second note that brings the CLTV 95%!

God Bless
Dr. Werner

PS I think these e-mail chat groups are one of the best blessings to come to real estate investment in a long time! Cheap and good information! What a deal! :slight_smile:

Re: Ed: How can I do this deal? - Posted by Ed Garcia

Posted by Ed Garcia on January 04, 2002 at 10:03:56:


Brian gave you an excellent suggestion.

His suggestion would be my first choice and make sure to take his advice about verifying the value of the property.

You don’t tell us how much the seller owes?

Since you have a credit problem, you can go to a “Hard Money lender” in Georgia. Request a loan for 60% of $210,000 if that’s what the house is appraised at.

60% of $210,000 is $126,000. After cost, you’ll net about $107,100, depending on how nasty the cost is for the loan. The seller was willing to carry $110,600 with you coming up with 30% of $158,000, which is $47,400.

Now you can explain to the seller that instead of them carrying $110,600 in first position, you can give them more money with your new loan and they will only have to carry $50,900 in second position.

A “Hard Money lender” could charge you less or lend up to 65% of the appraised value so there could be a variation in the figures.

Ed Garcia

Re: Ed: How can I do this deal? - Posted by Bryan

Posted by Bryan on January 03, 2002 at 10:58:02:

I am new to this but have read some interesting ways of doing things.
It seems like you have some folks that will work with you and this is good. They are asking $158K and want $47.5K in down payment money leaving a balance of $110K that they are willing to finance right? If the house is worth…and you need to do your own comps to find out the true appraisal…it seems as though they could take out an equity loan or second or whatever on their own house before you buy it. Then you take over their payments for the second and pay whatever seller financing you have already worked out on the $110K. If you can support that it may work for you. Do your numbers and make sure everything works out for you. Once you have the property in your name, you should be able to re-finance it and pay them off. If the house does appraise at $210K, an 80% LTV loan will come in at $168K, or if you’re just going to turn around and sell it anyway, you can cash out then.
Again, I am by no means an authority on this, but I read it and thought I’d throw this out there and see if anyone else thinks this may be a good idea.
Best of luck and let us know how things turn out. I will be watching the postings to see what happens.


I am interested in this deal please call - Posted by Randolph

Posted by Randolph on August 12, 2003 at 07:00:51:

I am interested in this deal please email me at trainerrls@hotmail.com