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 …
RL
If a seller agrees to carry a 2nd mortgage… - Posted by Jim C
Posted by Jim C on November 29, 2000 at 01:40:42:
If a seller agrees to carry a 2nd mortgage, is there typically an interest rate involved?
And do you make monthly payments? Or is it just agreed that you make 1 balloon payment in a given time, say 12 months?
Thanks!!!
I wouldn’t pay more than… - Posted by Larry
Posted by Larry on November 29, 2000 at 20:21:38:
22% on a seller held note.
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.
Best Wishes Jim
Larry
Re: If a seller agrees to carry a 2nd mortgage… - Posted by JPiper
Posted by JPiper on November 29, 2000 at 08:11:31:
It’s all negotiable.
JPiper
Re: If a seller agrees to carry a 2nd mortgage… - Posted by DAVID
Posted by DAVID on November 29, 2000 at 07:05:30:
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.
Re: I wouldn’t pay more than… - Posted by JohnBoy
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.
Re: I wouldn’t pay more than… - Posted by Redline
Posted by Redline on November 29, 2000 at 20:45:22:
Wow - and all this time I’ve been paying 49%. If I’d only known!
Redline…Back up a minute! - Posted by Brent
Posted by Brent on November 29, 2000 at 21:56:45:
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
Brent