Posted by dewCO on December 30, 2000 at 20:39:28:
Why does he want to hold an option? Is proposing a lease option, or what kind of option? What loan that has been approved, for you or for him? The 30-yr. amm. with a 3 yr balloon is just to get the monthly payments down. It means that the entire balance is due at the end of the 3 yrear period. One either sells or refinances to get the $$$ to pay off the loan.
help with options and balloon mortgages - Posted by freshman
Posted by freshman on December 29, 2000 at 09:53:44:
please advise on the following.
An investor has propositoned me to purchase a property, but he wants to hold an option. Some history: – the area was previously targeted to build an office park, however the deal fell thru. In addition the loan that has been approved with the bank the investor is ‘familiar’ with is a 30 year amoritization and a 3 year ballon. (???) All of this is very new to me, and I need help as to what I should look for, what are the risk and the benefits.
P.S. What are the advantages of forming a LLC to “put the property in”? This is a recommendation from the investor also.
Any Immediate info is appreciated, I will be meeting with the investor very soon.
Thanks
P.S. This a wonderful sight!!!