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.
Pat
Does anyone have suggestions on how to handle holding costs for an expensive property? I don’t have all the details I need, but essentially the property is worth 1.5 mil or so (supposedly) and it could be had for 1 mil. I don’t have much hard money experience, but assume I could find someone to finance this deal for me. Other than a reduction in price, the seller is not flexible. He wants cash and wants it quickly. So, I guess my question is how would I hold this thing until sold? Would it take a year to sell? I don’t know the payments and didn’t ask since he wants out. Any guidance on potential exits would be appreciated. Thanks…