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…
3br/1.5ba
Comps 165-170k
seller owes 100k total
Will take back a note if gets min 20k at close
Has been offered 135k and 145k by 2 other investors (turned down)
Seller is 4months behind on payments to the lender-but is in denial of consequences. Wants at least 40-45k after closing expenses.
I believe that there is a way for me to step in on this and make 20k myself, since seller is willing to hold a note. Is my logic logical?
I believe that there are many buyers in my market looking for seller that would carryback and pay FMV for that. I don’t want to get a loan myself. I would like to flip this.
How should I structure the deal?
Re: Have Deal Here–Seller will carry note - Posted by Heather -Tx
Posted by Heather -Tx on October 01, 2003 at 10:08:06:
This is just my personal opinion…But 20K on those numbers wouldn’t be enough to deal with… maybe if you could make up payments and get it sub2. But the owner is really in la-la land and will have a reality crash soon. I not one to think “don’t give them anything, just take away their problem” but he is definately in La-La land.
the top 10 percent equity is considered air, and not to be counted on. That is about what your 20K would be.
Wait until he is closer to forclosure and then make him an offer. Maybe he will come down out of the clouds by then. He could still pocket 20K or so AND you get a deal that you could make something off of. That’s the win/win everyone talks about. If you offer more I doubt you’ll get that same kind of scenerio