JohnBoy et al... - Posted by Rich

Real Estate Investing
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Posted by JohnBoy on November 10, 2000 at 17:13:40:

If she has good credit and wants a no money down deal, then write up the sale at the $52,500. She gets a new loan for 80% LTV (42,000.00) and you carry back a second for the 20% ($10,500) difference. With good credit this shouldn’t be a problem. Although, having it rented at $450 will give her a negative cash flow if she’s paying $52,500 with no money down.

You could carry the second with 0 payments for x number of months to give her the positive cash flow until she can increase the rent and/or pay off the second. Maybe should could hold it for a year, then refinance again and pay off the second. Maybe you would even consider taking a discount for a full pay off on the second after a year for a quick $5k, $7k or what ever??? :wink:

Since she wants a no money down deal, then you agree to some terms to help her make it happen. You get the $40k cash you need, plus you have an $2k you could offer to pay closing costs with and you end up with a $10,500 second for your troubles that you can collect income off of or agree to discount it to her for an early pay off, which she can take care by refinancing the property after a year.

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JohnBoy et al… - Posted by Rich

Posted by Rich on November 10, 2000 at 16:42:52:

I haven’t given up the fight yet. I ran an ad on my rental property. I’ve had one serious buyer so far. She wants to do a simultaneous close, or a no money down, or some other creative technique (I think she’s been watching Carlton Sheets). In any event, she owns a couple other rentals and likes my house. I was asking $52,500, but I would be willing to cash out for $40,000. I just got someone to rent it at $450 per month (My payment is $235 per - I owe $18k). My potential buyer thought that was great. She has good credit and her husband has a good job. She wants to do this without using her own cash. Can anyone give me a proposal that I can relay to her that will do this deal. Thanks.
Rich