How do I profit from this type of Owner Financing - Posted by breeves
Posted by breeves on November 20, 1998 at 09:07:54:
$100,000.00 Sale price; $82,000 1st Lien note= 82%
$8,000 2nd Lien note=8%; $10,000 down pmnt=10%
Seller gets at closing:
>1) $69,700 Cash for 1st Lien Note
>2) $10,000 Cash down pmnt
>3) $8,000 2nd Lien Note
A total of $87,700 to the seller.
Instead of telling the seller that he will get the 69,700, for the first, I offer the seller 68,000. I profit, 1,700. Seller gets 86,000.
I could approach the FSBO’s and get a consultant fee for arranging the above financing. What other ways could I profit from this type of financing? I would want to pass the financing on the another buyer and not buy for rental unless their was a very good cash flow and there was a way to recover a majority of the 10,000 dwn pymt. This much down would be too much to recover in a L/O deal. Anyone have some ideas?
Thanks for any input.