Posted by Michael Steele on March 15, 2006 at 15:06:59:
On Paper – your asking price is truely what ever you make it out to be. If you bump your price from 100k to 110k that is up to your discresion. Per lender requirements the buyer has to give 10% of the sales price. All proceeds are given to the seller at point of sale. After that what the seller does with his/her money (keep or give portion back to the buyer) is up to their discresion (as long as any agreements are not put on paper – thats where fraud is brought in)
These types of deals are called “creative financing” but keep in mind it is up to your discression as the seller as to if you choose to take this route.
Also keep in mind the extra 10% increse creates more of a capitol gain that in actuality you are not truely recieving. Again – up to your discression.
This seems to be a deal you should look at from all angles before you proceed and try your best to make the wisest decision.