Ideas for structuring my deal? - Posted by Mike (IN)
Posted by Mike (IN) on October 25, 2003 at 08:33:45:
No Repairs needed/great condition
Existing Mortgage; $28k / $400 month incl taxes & ins.
Seller needs $50k of equity so will sell for $78k
Needs $20k of equity now but will hold out for rest
on short term note or balloon payment within 1-2yrs
Seller will allow Subject To on existing $28k Mortgage
I have a private money lender that will loan the $20k
but only on a short-term note of 6-12 months at 12% interest only payments.
I also have excellent credit if I needed to just get financing with seller holding a 2nd.
I can either sell on lease/option or cash out for a retail sale. If I lease/option, tenant/buyer rents would easily be $950/mo.
Use private money lender for $20k to give to seller now and set up with $0 or minimal payments with balance of $40k due within 1-2 years and take the 1st mortgage over subject to.
$20k at 12% int only payments - $200/mo
$28k Mortgage - $400/mo
Problems for lease/option would be the short term note from the private money lender of 6-12 mos. Problems for getting financing would be that the selling price is higher than I would normally pay without getting terms.
What would you do?