Posted by PBoone on June 13, 2000 at 09:37:15:
Holding costs vary from 2-15 points and 12-16% interest, calculate the duration of the loan. Lets talk about the deal.
What does the seller really need? 1 mil? probably not! possibly just the equity he/she has, or maybe just the payments caught up or maybe another loan has come due and he/she need cash to pay that. In order to put a deal together you will need to know these answers. When we deal with a seller liquidating their property needing all cash my first question is “what about a loan assumption” just to get the conversation started.