Re: Ol’ Uncle is giving his niece a test run - Posted by Sean
Posted by Sean on July 10, 2003 at 11:49:41:
I don’t want to sound like a doubting Thomas, but rule number one verify the properties values, don’t take your Uncles word for it. I know he’s family, but just never take the word of anyone as to the value of a property, verify it yourself.
AS to how to get him the cash he needs, I think the suggestion that he refinance the cash he needs, then having you make the payments is a very nice solution.
If all he wants is 35% of their market value total to buy them, that’s a very sweet deal. However is this all he wants for the houses? Or is it 35% cash down, and he is going to take the balance in a note etc? That may not be such a sweat deal.
Another option would be, for your uncle to create a mortgage to you and then sell that mortgage on the market. He won’t get face value, in fact he won’t likely come close, but if all he wants is 35% of homes values in cash, he could write the mortgages for amounts high enough to get him the cash he wants… plus side is, he will get his cash, down side is, you will be paying a lot more than 35 cents on the dollar to actually own the houses.
You would need to talk to a note buyer on this one. There are other paper techniques that could get him his 35% cash as well.
Best of luck.