Posted by Doug, KY on February 24, 2000 at 16:33:50:
When you are talking with him next time, just bring up the fact that you may be coming into some money (80,000)in the near future and are thinking about investing it. Your thinking about investing it in bonds, stocks, real estate, whatever. And in a few years, it will be worth enoungh to pay him off. Unless he would like the the money now as a payoff for the loan. Just depends on how bad it wants the money. If he says yes, then say “I’ll have my attorney draw up the papers and make all the arrangements.” Everybody wins.
Almost 3 years ago we bought our farm on a contract for deed and are now trying to refinance through a mortgage company. (This was 2 years before purchasing the CS program and discovering this website). We didn’t know a whole lot about owner financing, and had it drawn up like a regular mortgage, amoritized, etc. Paid 130,000 put 5,000 down financed 125,000 for 15 years at 10%. Now we are approved for 132,000 mortgage (based on property value being 200,000 to 225,000) at 10.5% (due to NO established credit and self employment) for 30 years. We want to buy out the OWNER for 95,000 to 100,000, no more, although our amortization sheet says we should pay 124,000. What is the best way to negotiate this? He owns the property free and clear, had rented it for 10 years on and off, had it up for sale various times, no takers, and it sat empty for 1 year before we came along. Still, he is an eccentric individual and not very predictable.
Re: owner financing payoff - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on February 24, 2000 at 19:32:52:
Every month when you make your mortgage payment attach a note to your check that reads as folloes: “If I could pay you off completely how much discount would you give me?” When the discount gets right then refinance and pay him off. In the meantime he has the idea that you have or will be getting some money. Just keep asking, and sooner or later you will get the result that you need.