Posted by Reba on January 05, 1999 at 21:28:15:
I really hate to be so ignorant to the ways of C.Sheets program, however could someone please help me out here?
I found a triplex in my area, all 1 bedroom apts. Good location and cash flow. The owner started at 69K and is willing to sell (complete owner finance) at 50K. We have been over it, good rental history nothing wrong that we can find. The triplex has an additional floor that can be rented for storage,another plus.
Questions??? Here goes, and I hope you don’t mind all these questions as I should already know before making an offer, rather I thought I did have everything in hand.
I offered him 50K at 400 a month deferred for 2 months (to get things in order, one vacancy). He agreed however he wants me to pay the fee for the agent selling the house $3,500, he even took it off the asking price to $46,500.
The agent may be willing to accept payment over time.
How do I go about figuring that payment out, simply and interest rate over 2-3 years? or payment with balloon on her payment also?
I offered $400.00 to the owner with a balloon in 5 years.
He wants to keep the deed in his name and do I pay taxes and insurance if the deed remains in his name?
Is that usually the case in owner financing, the deed to remain in his name? He also wants to put a lean against another one of my properties for security. Sound like double dipping? Wouldn’t his property revert back to him for non-payment of the loan to him with all the payments already made to that point his also.
Why would he need to ask additionally for a lean against another property?
Now I am confused about the interest rate. I offered him a flat $400.00 for 6 years with a balloon, he came back and asked for a 7% interest rate…Does that increase my $400.00 payment, where does that interest rate come into play? I didn’t quite understand that part, thats why I offered a flat $400.00 a month.
Is owner financing like a bank loan, so much to principal and so much to interest, is that the answer?
Also when I figure out the payment before the offer, should I figure 7 % over 6 years and that would be his payment, or 7% over 15 years as I would if I were financing with a bank?
I am extremely confused on how to deal with that, that is why I just threw out the $400.00 figure.
In addition I would assume I pay the taxes and insurance above the $400 payment to him.
So for you experts please help this novice, I know I should understand this process better before offering. I am certainly glad I found this site or I might be in big trouble.
Any help and input would be greately appreciated and a great learning experience for me, as I am trying.
Thanks alot to any help and to all reply’s
He also wants me to pay the attorney fees?