Posted by Michael Morrongiello American Note on June 21, 1999 at 13:05:55:
Robert;
We would allow this to happen IF it were properly disclosed to the seller. Also if these funds were to be earmarked to renovate the property then we might have them held in an escrow account to be released in phases as the renovation work is being done to the property.
Michael Morrongiello
American Note
Operations Manager
Purchase Cash Flow - Posted by Robert
Posted by Robert on June 17, 1999 at 15:26:40:
I hope I can explain this idea good enough. I want to buy a 6 plex. It is 165K with a 6K no qual Assum Mort left on it.The seller wants 20 K down and will carry bal. @9% for 30 with a balloon.What i wanted to do was create a mortgage for 165K(by the way 34% ROI)@9%,then flip a partial(36 or 60 mo) to a discount note buyer,pocket the difference between the 20K down and the amount received from takeout buyer for the partial. Give the Seller a down payment of 20K and set up a 10 year balloon .Challenge, can I flip a partial off a mortgage I created with the Seller? Do I have to disclose the amount the disc buyer is paying for the note? Will this work?
YEAH it might work - Purchase Cash Flow - Posted by Michael Morrongiello American Note
Posted by Michael Morrongiello American Note on June 17, 1999 at 23:25:36:
Robert:
We are very familiar with the type of transaction you have outlined. In fact all things reflecting positively - it would appear to be a very feasible deal for us.
You can create a note with the seller and then have the seller sell off some or all of that note for cash at closing. What we want to make sure is clear is that the seller is not mislead over where your “down payment” is coming from. If he/she is OK with raising cash in the method outlined then we’re OK.
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Michael Morrongiello
Operations Manager
Re: one other question about Purchase cashflow - Posted by Robert
Posted by Robert on June 18, 1999 at 23:19:56:
Can I walk away from closing with cash. For example, Lets say he wants 20K,(down)and I flip a partial for 30K, is it legal for me to keep the 10 K for myself? I think it would, if at the closing table I bought and sold the partial from him right?