I would have to say that if the owner is going to be placed in a nursing home, you may be able to save this asset by having the owner carry a mortgage. From some research I did before,I think a nursing home can only attach the income of a installment sale while the patient resides. Usually a monthly stay is 5-7k per month, so a short stay will easily deplete this asset. Of course, I am not a lawyer but I’m just putting this out there as apossible way you can help this poor soul from losing everything under title 19! I would speak to the owner’s lawyer and see if this is a win-win for you and the owner’s estate.
Interested in a single detached family house, also zoned commercial. Asking price is $118,000. During a visit to the property today with the listed agent, the Owner revealed that he might accept about $80,000 (he thought I was working with the agent; the situation was however corrected but I already had the inside information).Property needs a facelift-new bathroom, kitchen, carpeting and electrical upgrade. Owner is going to a nursing home after the sale.
I intend to use the property as my primary residence and part for my new advertising business.
SITUATION: My credit is very bad and don’t think I will get a mortgage at this time. How do I structure this deal so that the seller will finance (carry the mortgage) for about 12 months with interest only payments? During this time I plan to re-finance the mortgage for about $100,000, pay the seller his $80,000 and fix the property: or finish straightening up my credit and be able to secure a mortgage. The property is listed with a real estate agent.
Please help with any ideas.
Send in an offer of $80k, Interest only payments for 1 year, Balloon payoff in 1 year; and cross your fingers. You already stated what you want to pay and how you want to pay for it; so write it up!
Really though, if you can’t get financing in the traditional way, then viewing properties being sold in the traditional way may not be the best use of your time.
If you plan to continue viewing properties this way, you may want to save time by just asking the listing agent before you set the appointment if the seller will finance the deal. If they say yes, then go view. If they say no, you saved yourself a trip.
Tim’s right on the mark here! - It’s taken me a year to find a realtor that would even call me back when I mention seller financing.
But I’d ask 13 monthes to pay off the balloon. Seasoning issues here in Ohio are outrageous and you may need 12 monthes before a bank will even talk to you. Make sure you structure the note in simple English so he understands how much he gets per month and still gets the full 80,000 in the end. At 10%, he makes an additional $8600 on the deal + he gets rid of his house now!