I need some ideas - Posted by The Baze
Posted by The Baze on May 06, 1999 at 21:15:23:
Here’s the deal. House is worth about $225,000. Has a non qualifying assumable of $112,000 @ 10.7% interest, $1088/mo PITI. Seller will let someone assume the loan and will take a second if he gets $40,000 down. I tell him he may as well be asking for a million because neither one’s going to happen (got that from Joe Kaiser). He really wants to be done w/ this thing by the 15th. It’s been vacant for 4 months, but it is in good shape. I tell him I can give him $10,000 down, assume his first, and give him a second for $88,000 for a total price of $210,000. He says fine, if I can give him the $10,000 and close by the 15th. Problem is, I don’t have the $10,000 w/out dipping into my IRA, which I’d prefer not to do. Now the house is in a good area, and I’m reasonably sure I can get $20,000 down from a buyer rather quickly and sell on a wrap. Now before anyone suggests I tell him I’ll give him the money when I get a buyer, I already tried. His response? Actually a pretty good one: “Why should I let you give me $10,000 when I really want more, for you to tell me you can only give it to me when someone else gives you more than that? That could take 2-3 weeks, and in that same time frame, I might find someone who would give ME what you want them to give YOU.” Gotta admit, I didn’t have a comeback for that one, so I agreed to pay him the 10 and close by the 15th. Anyway, anyone got ideas on how to pull this off? I’ll dip into the IRA if I need to so I don’t lose the deal, but I’m just trying to think of alternatives. Also, if anyone has a snappy comeback to the above mentioned objection, I’d like to hear it. Thanks.