I dont have the experience Piper does… - Posted by David Alexander
Posted by David Alexander on November 10, 2000 at 18:15:31:
but I’d do the deal, just would structure it different.
I’d first try to buy her for little to nothing out of paocket to walk… in the event that didnt work I make the 8k a dormant note due when the property sold, wouldnt mention payments or interest.
I’d try to get the 10k down if I could, and I wait and pay the 3k at the latest possible moment, then I would either exit by selling for cash or selling with financing for about 10k down or so.
Selling for cash should give you a 100% return after figuring in costs such as Realtor, closing, holding, etc.
Owner Financing should give you a great cash own cash return of any cash you have buried, hopefully not more than about the 3k… but collecting a cashflow on the full loan and interest rate spreads.
And I would try to figure a way to borrow that so that you have all your cash back and can keep on moving on more deals.
ie… 80% is 72k borrow as much cash as you can against the spread between the 48-72k mark and give someone a decent return, you can then take the cash and do more deals.