How to fill out the contract? - Posted by Justin

import · July 25, 2003, 11:41am

Posted by Randy on July 25, 2003 at 13:07:53:

Add a clause to the purchase agreement
Seller Concessions
Deferred Maintenance?
Seller to assist w/down pmt

import · July 25, 2003, 11:41am

Posted by Justin on July 25, 2003 at 11:41:40:

Here’s the deal:

I have an owner that is willing to sell for 113K and the house if roughly worth 155K. Let’s say that I obtain a loan for 80% of the property value. That would be about 124K. I’m needing cash out at closing to make a few touch-ups to the property and make a few payments. I’m wanting to set it up on a lease-option to an end buyer after I have ownership. I know this is possible, but I’m not sure of all the details involved in the actual transaction. How do I write the contract with the seller if I’m wanting cash back at closing? (I’m in Texas so I’m using a standard TREC contract) Please help!

Speedy Home Buyers
Justin Walton
Email: justin@speedyhomebuyer.com or jwalton@trcsolutions.com

import · July 25, 2003, 3:51pm

Thanks! - Posted by Justin

Posted by Justin on July 25, 2003 at 15:51:36:

I appreciate the help. This board is awesome!!

import · July 25, 2003, 3:03pm

Re: How to fill out the contract? - Posted by ken in sc

Posted by ken in sc on July 25, 2003 at 15:03:02:

Try your small local banks. The commercial loan department. Tell them you have this great deal. Bring them comps, your financial statement, tax returns, etc. Have a written plan of what you are going to do and the costs associated. My bank would easily loan the money on a short term loan - typically a 3 year loan based upon a 15 year amortization). Since this loan will not be sold, they have the ability to look at the deal on its merit.

Ken

import · July 25, 2003, 2:09pm

Re: How to fill out the contract? - Posted by Rich[FL]

Posted by Rich[FL] on July 25, 2003 at 14:09:55:

If you’re getting a conventional loan from a mortgage company, they usually loan on appraised value, or purchase price, WHICHEVER IS LOWER. So, you’ll have a hard time getting cash back. If you’re purchasing for $113 and getting an 80% loan, the bank will give you about $90k and you get to make up the difference somehow. (Personal funds, seller carryback, etc.)

Rich