Posted by LeAnn on October 01, 2003 at 10:35:54:
I agree with everything you’ve suggested. I was just wondering if the fact that the seller is willing to hold a note for over half of his profit make any difference.
If I brought in a new buyer that had financing or cash for 145k…and seller agreed to pay me $20k at closing for contract assignment, wouldn’t that work?
Purchase price 170k
145k-100k mtg= 45k - 5k closing chrgs- 20k to me
Seller gets his $20k at closing and takes back a note for 25k—
And that is only if sellers note is 0 interest… If the rate on the note were 7% over 10 years where the seller was still getting his 25k from the note, it could mean that I could make more upfront…
25k to me at closing
seller takes a note for 20k over 10 years at 7%— total int pd would be $7866–Seller would get $27866 plus their $20k at close…
What do you think about that strategy?