I need some advice on this deal… Thanks a million!!! - Posted by JohnB_NJ
Posted by JohnB_NJ on December 01, 1999 at 22:22:16:
Nice house on bayfront property. Will appraise for over 360k. Needs nothing. Owner needs to sell so he can by a different house. There is a 130k first mortgage. Seller needs 50k to put down on a house he has under contract.
The seller will sell for 295k. It is listed with a Realtor.
Ok, so the seller needs roughly 200k to pay off existing first (needs to do this so he can qualify for another loan), 50k for the down payment on new house and 15k in commissions to Realtor.
I have a very short fuse on this. The seller’s contract to buy the other house terminates on Dec. 15th. If he gets his current house under contract, he will be able to extend his purchase contract. I would like to put the home under contract and advertise it for sale in the North New Jersey area where the “money is” and find a buyer that would love to own a bayfront house.
The seller is willing to hold paper for the remaining 95k for upto 5 years at 7% amortized for 30yrs (2nd position).
Since this is my first “high end” deal, I need some advice.
My partner was thinking that we can find a buyer with 10 to 20% down on the 360k price and create a note for the difference and sell the note at simultaneous closing (I think that would be a triple close) to fund the deal. Again, the seller will hold a 95k second.
Of course I will have to spend some cash to advertise the heck out of this property but the my sellers are very cooperative and will help me show it to my buyers. My only fear is the Realtor will put her nose into the deal and screw it all up. Oh, the house is listed at $389,000. She has it listed way to high. The house is truely only a three bedroom with a loft but she has it listed as a 5 bedroom. The house has been on the market for a few months with only a few showing and really no interest.
Again, any and all advice will be greatly appreciated. My partner, Mark, put a call into American Note to see what they can do with this deal.
Thank you and have a great day!!!