Real Practice Problem to Structure Offer - Posted by breeves
Posted by breeves on April 12, 1999 at 20:11:41:
I need help putting together an offer to solve the seller’s needs. I just don’t seem to have the creative talent see the different possibilites.
Seller need 20k cash and loans paid off and will carry a second. She is very flexible to any type offer.
Property #1-She lives here
Loan Bal 50k
Rental Rate $775
Townhouse FMV 58k
Loan Bal 25k - with parents but wants it paid off
Pymt - ??
So I got about 26k in equity (FMV - Sales price). I am not looking for rental property, but am not opposed if cash flow is there. I’m thinking of selling both on L/O.
Possible offers - 1)Get investor loans at 80% = 106 cash to pay off her loans of 75k + 20k cash and she hold second for 11k.
2)Help her create a note to me for both properties to sell at closing (133FMV *.80LTV *.92discount)= 98k and she holds second for 8k.
- Need help I’m out of ideas