Posted by JohnWe (NoCA) on January 20, 2000 at 17:59:49:
Good Deal? Great Deal! Here’s my numbers:
Purchase Price: 60K
Down Payment (10%): 6K
New Loan: 54K
Term: 30 Yrs
Cash Flow: $653.77
All on No Money Down (Well, maybe a little for closing costs).
Do you need another 5-10%? No.
His downpayment offer is all you need in the deal.
Don’t worry so much about terms just yet. Even with lousy terms, you still have great cash flow.
You need earnest consideration in the deal. This could be a promissory note if the owner will take it, or if you have to come out hard, I wouldn’t go more than about $100.
How long does that give you? However long you set the escrow date for. If the seller will go for a 90 day close, then take it. That will give you 90 days to line up financing. With good credit it shouldn’t take long to get a 90% loan.