PROVIDE SELLER WITH EQUITY - Posted by DON JOHNSON

Real Estate Investing
#1

Posted by Monique on March 10, 2001 at 22:02:44:

First, turn off ALL CAPS. It’s as if you are shouting.

Depending on your exit strategy with the property, you might be able to structure a payout on the $35k that meets the needs of the family/friends. Let’s say you plan to sell the property with a 1 year L/O. Then, you might offer to buy the property Subj To the 1st and make monthly payments on the balance with a balloon in 24 months. You should be able to pay it off in a year when your buyer pays you, but ask for the extra 12 months to leave yourself room.

If they can’t do a 2 year balloon, then maybe your exit strategy would be to buy the property for $135K and sell it for $155K to someone who can get a new loan. Market it with Seller Financing, and agree hold a 2nd mortgage to help the buyer qualify. You could take back a 10% 2nd mortgage (and even a little more) if your buyer can come up with $135K between their 1st mortgage and their downpayment.

Or, see if the seller can refinance to pull out the $35K. You take over the payments on the new refinanced loan on the property.

Monique

#2

PROVIDE SELLER WITH EQUITY - Posted by DON JOHNSON

Posted by DON JOHNSON on March 10, 2001 at 19:21:52:

SELLER IS MOTIVATED( BOUGHT NEW HOME OUT OF AREA WITH BRIDGE LOAN OF 35,000 FROM FAMILY/FRIENDS) NEEDS TO REPAY ASAP. HAS NOT BEEN ABLE TO SELL LOCAL HOME. HOME WORTH 155,000 ASKING 145,000 BUT NEGOTIABLE. 100,000 EXISITING LOAN ABOUT 2 YEAR OLD. WOULD LIKE TO BUY SUBJECT TO, BUT NEED CREATIVE WAY TO PROVIDE 35,000 TO SELLER. APPRECIATE SUGGESTIONS ASAP. THANKS.

#3

Re: PROVIDE SELLER WITH EQUITY - Posted by Bud Branstetter

Posted by Bud Branstetter on March 12, 2001 at 24:49:09:

It’s late and I’m a little short. Why do you want to buy at 87% ltv. Why would someone put up 35K to be at 87%. In the old days of assumable loans you could get a second. Or sell an owner financed note to get them the money. Those are out with non assumable loans. Of course if it is really qualifying assumable you could get a second in your name. There are even 95% investor loans for full doc. Of course you don’t want to use any of your money or credit.

It appears one way is to find a buyer that can get 90% financing or better. Why hasn’t he been able to find that person. Another way is to let him take out an equity loan(unless he is in Texas). He created the problem and wants you to solve it for him without going out of his way. He doesn’t yet feel the pain.