Posted by Stacy (AZ) on May 07, 1999 at 21:08:40:
What can I say, Bud. You’re right. I looked over my suggestion for this deal, and it basically comes off as stealing all the equity from a poor old lady…never my intention in real life. I’ve got to admit, the deals that come across this board start to all look like math problems, and of course this is a real person we’re talking about. Anyway, you raise a good point, and I know if this was my deal, I wouldn’t be able to sleep at night if I thought I didn’t give this woman a fair shake.
But, if there really is a substantial risk in being able to get FMV for the house (as implied), the amount of profit I would be willing to share would have to be compensated by this risk. I’m not sure I would spend my time brokering a note, and getting only a broker’s commission out of the deal, but I think splitting the profits would be fair. Anyway, thanks for the reality-check. I appreciate your experienced advice!