Posted by Jason (AL) on April 18, 2007 at 22:08:19:
I’m sure Michael will chime in here and “set ya straight”.
But I can tell ya that you’d be better of financing the WHOLE sale and taking back a 1st lien position, as opposed to taking back that “throw away 2nd” (as it’s so called in this business). If you still owe on the property, consider “wrapping it”.
If you were to take back a 2nd lien, you would be lucky to find any buyers.
IF you did find any buyers, you’d be disappointed with their offers.
Of course, if…
- your buyer has already been approved
- you buyer wants in for little to $0 down
- and your just WANTING to take back a 2nd for cash flow
…then stick to your current game plan.
But like I said, you’ll be better
off structuring this deal a lil’ differently.
Michael is the man you need to talk to.
Until then, here’s something to read up on: