Posted by mike on April 13, 1999 at 19:28:45:
parents loan can move to house nr 1. frees up nr 2. go borrow on it. pay seller. take over her debts on a monthly basis if psbl. bribe parents. maybe parents would rather have something else that you can buy creatively, e.g. rv, vacation home, insurance policy, new car. just keep asking till you put it together…
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.
The Facts-
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
SFH
FMV 75k
Repairs $750
Loan Bal 50k
Pymt $742
Rental Rate $775
Asking 62k
Property #2
Townhouse FMV 58k
Repairs $500
Loan Bal 25k - with parents but wants it paid off
Pymt - ??
Rental- $775
Asking 45k
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.