Posted by Redline on November 30, 2000 at 15:48:04:
Actually, I apologize … I was being a bit sarcastic because I thought it was interesting that someone could belt out a hard and fast number like 22%, which sounds to me to be too high - but if the deal affords it, then …
Now I know all of the others will say 22%! What are you crazy?
Well folks let me tell you this. If you think for 1 minute that a seller is just going to give you a loan for less than that you’re foolin yourself! Sellers need to have a little something in it for them as well. Hey, it’s a give & take world out there. You want the house? Give some interest money! Be fair for gods sakes.
I’d just love to see some of these guys here try and swindle a 0 or low interst loan from a seller. It would be more fun than watchin a retard eat hot wings!
Remember 22% or less if you can but that #22 gets sellers attention. Don’t really know why but it does.
Typically, there is, but not necessarily. It just depends on the agreed upon terms. I just bought a triplex where the seller held a 5 year ballon at 9%. The thing is, to get a seller to hold a 2nd, it must be attractive to them. If I get the price I want, I generally let them give the terms of the 2nd, within a reasonable limit of course.
Posted by JohnBoy on December 01, 2000 at 06:56:28:
If I were the seller and someone came along and offered me 22% I would either think the person was a desperate nut case or had some kind of scam up his sleeve.
49% is an extremely high rate to pay a seller. I know that they need to profit as well as we as investors do, but you should really re think this over and look at the long term of it.
Unless you got some hidden benefits, I would not pay that high a rate to a seller. Larry stated 22% and I would tend to lean in that direction