Posted by Bud Branstetter on December 31, 2000 at 23:47:36:
From what you say I see
repairs, etc $20,000
If it were free and clear you could split fund it at $8k now and $37 in 12 months or when sold. He could only make 6% or $2500 on his money if he had it all. To borrow hard money it could cost you $4500 for six months use.
If he would owner finance it is a combination of cash down required and interest rate. No balloons under 7 years. How about 3K down and 7% interest with 30 year amoritization with call in 10 years.
The problem is it is too early to start making offers.
Why not call him and talk to him about his needs or wants. Make sure he knows how bad of a condition the property is in. As you ask him open ended questions he may tell you what his situation is.
Then there is always let him borrow the money to fix it up and you control the work and the sale.