Re: Motivated seller nearby - Posted by Brent_IL
Posted by Brent_IL on January 24, 2002 at 10:11:15:
The seller is in a new house so he doesn’t need money for a down payment. As you say, he’s also subsidizing the mortgage payment. Is he unwilling to carry the whole financing because he wants to retire the loan?
If you can find out the ultimate destination of the sale proceeds, you can custom-fit your offer.
Seeing as the seller is open to seller financing the down payment for a “year or two,” a L/O, or equity-sharing trust should definitely be considered. I?d feel better, personally, with four, five, or more years, but I would still do the deal for $5K. A resale after fix-up would free up some money sooner.
If the sold comps are $225-235, is its appearance the sole reason he hasn?t sold the house at $10,000 under FMV? Maybe $175K isn?t such a lowball offer at the present time.
Since the seller is in an accommodating mood, insist upon a substitution of collateral clause in the contract for the down payment note. Or, just use a promissory note (embarrassingly low, deferred, or illusionary interest, of course) as collateral and say, ?Sign here.? In addition to your fix-up profits you?ll have an unsecured low or no interest loan when you sell.