Posted by Pavon Bailey on March 01, 2000 at 14:57:02:
JA:
If you are making Legrand-type offers, and want to put off a payment, why not do a split funded deal. According to LeGrand, split funding is simply promising the seller that you will make a large payment, no interest, no monthly payments, in 6 months to a year. You ask: Where will I get that type of money to make a $125000 payment, for example? By selling the house. All LeGrand is trying to express is that many sellers will wait 6-12 months for their money if you ask. Plus, split funding will enable you to make tose “all cash” offers that sellers normally want anyway. I like the idea if you ask me. Hope this helps. Happy investing and FLAME ON!!!
Pavon
PS-Look for the article on this website. It’s free.
I am in debt up to my eyeballs–sinking fast–but an investor has dropped these 2 deals on me.
80k value–with 54.5k FHA assumable, townhouse rented at $650 mo. Mortgage at $450 mo. Thinking of taking loan subject to and seeing what she will take back on her equity. She may be willing to do a balloon. I want to either keep the house for the rent or try to sell above 80k. Suggestions?
Two bedroom rented at $475 mo.–she wants 40k all cash, owes 18k to private lender who does not want to take back a note. (I think the value is at 42k). She also has said a balloon(s) at increments is possible. Her concern is not to make a problem with capital gains since she won’t be doing any exchanges. (liquidating 8 properties–these two are ones not listed with realtors).
No money from me but what can I offer her? Could I put off the first payments for 3-4 months while I try to sell the townhouse? Honestly here–this would be my first deal for real.