Posted by Brian_CA on February 24, 2000 at 12:57:43:
Dear Claude,
What about making the same offer of 200,000 with 25,000 down on a L/O for 2-3 years? Make sure the realtor gets paid up front through!! Perhaps offer to pay the realtor your self. The owner will keep the the tax benefits and get a no headache property, you can get some cash flow for the next couple of years, you both will save on some up front closing costs and it will give you control of the property to either sandwich the deal or find a new buyer! Hope this helps!
I found a motivated seller who wants to unload 3 half plexes.I would like to make a single offer to purchase all 3. The owner is asking 85k, 76k and 76k. They are all in the same neighborhood and the comps support his asking price. I’m not sure of his motivation since the realtor couldn’t answer that question. In reviewing the property profile from octitle it appears he owns all 3 properties free and clear. This is what I’m thinking of offering.
Total offer price of 200k for all 3 props
owner to pull out 25k for downpayment
I will acquire a hard money loan of 120k 60%LTV
the owner will carry 115k (80k + 25k)2nd payable @ 1% per month with a ballon in the 10th year, interest free
Claude:
If you intend on putting down some cash ($25K +/-) towards the $200K purchase price then why not approach the seller to owner finance you as the seller and take back a 1st lien purchase money trust deed for $175,000.00?
This note could be sold at closing if the owner desires to generate a significant amount of cash to thie motivated seller. It sounds like CASH is what the seller wants. Explain to him that even though your offer involves seller financing, you can pre arrange for a CASH advance to take place for his take selller carry back note.