Posted by davil__OH (newbie) on October 24, 1998 at 11:13:33:
Hello all! I’ve been looking at this deal this morning, and I have a couple of thoughts… If the seller is unwilling to put a loan against some of his equity, how can he get at that money without selling the house? This is assuming he has no other way of raising the 20K.
The seller wants a guarantee that the house will be sold at his price. Seems to me that the only way that will happen is if you buy the house, Jim, and have the seller carry back a 2nd and 3rd. The second could be discounted and sold for the 20k. I haven’t run the numbers, but I have a feeling the seller will have to come down off his price in order for this to be worth the effort. Furthermore, you probably don’t have an interest in buying the property, which is why you want to l/o in the first place. Perhaps if you run the numbers for the seller he’ll come around. Sure, he can get his 20k without going into debt, but he gives up equity in the form of a discount. Personally, i can’t understand fearing debt so much that I’d be willing to give up sizeable chunks of equity in either discounts or comissions. If this seller is reasonable, I think he should be able to see how doing the deal with you and a home equity loan will save him money. --davil