private deal - Posted by vr
Posted by vr on August 08, 2007 at 22:51:47:
I found a property which has appraisals ranging from 2m to 3.1m. The owner needs to transfer immediately ( they built home in 2001 @1.2m and have made a lot of improvements i.e.finished basement, added conservatory, pool plus plus plus) they only want 1.761,000 but a fast closing.
Will this work I agreed to purchase at the appraised value the seller holds an interest only second for 825,000 15 year note, I finance the rest, the seller gives an additional 6% for closing assistance. Tne seller gives back the difference between 2,275,000 and 1.761,000 less closing cost. The seller is willing to help anyone who will do a quick sale (How do i structure this part, do i state it as a lease back option purchase in a separate agreement)
How do i structure this so it is legal. The seller really does not care about the 825,000 they would just sign off on it but I thought we should do an interest only so its okay with the IRS. But how do we structure so they can later forgive the 2nd loan or I can purchase the note for .01 cent on the dollar.
IS there another way?