Posted by BR on June 13, 2000 at 24:33:51:
However, I intend for my buyers become ‘HOME OWNERS’.
Sandwich L/O Question - Posted by BR
Posted by BR on June 12, 2000 at 20:40:57:
When your Tenant/Buyer exercises the option on a deal where your option price from the Landlord/Seller was loan balance at closing, doesn’t that mean the Landlord/Seller will have to come out of pocket with closing costs? Am I missing something here?
Re: Sandwich L/O Question - Posted by JoeB(Atlanta)
Posted by JoeB(Atlanta) on June 12, 2000 at 21:44:23:
Hi BR, if you’re buying for loan balance and no equity then it would probably be a good idea to NOT require the Seller to pay closing costs in the contract (remember: you write up the contract to reflect the negotiations that you did–sellers don’t always have to pay closing costs).
If they do have to pay c.c. --you’ll need to inform them that they’ll need to bring money to closing table (that will NOT endear you to the seller).
Best of success,
Joe Brillante
I guess not! - Posted by BR
Posted by BR on June 12, 2000 at 22:03:20:
I hear LeGrand and others mention getting deals for ‘loan balance at closing’ but never mention the part about breaking this news to the seller. This certainly needs to be addressed. I guess then the investor ‘should’ either pay the closing costs or allow for this in the option price, correct?
Sorry about confusion, here’s simple summary - Posted by JoeB(Atlanta)
Posted by JoeB(Atlanta) on June 13, 2000 at 11:17:44:
Hi again BR, all the responses got to be confusing. Here’s my summary: when I’m doing a LO where there’s no equity for the original seller I PAY ALL the closing costs and build that into my calculations.
On the back-end (when my Tenant/Buyer executes his purchase option) I usually get the T/B to pay all the closing costs, hence I don’t truly pay any cc out of my pocket. The T/B as the Buyer pays all the cc that the Seller might normally have to pay.
Big picture is, don’t let a little thing like who pays how much of the cc kill the deal, but certainly don’t ask the Seller to pay them, unless you know they have money in the bank to afford it AND you’ve explained it to them up front.
Best of success,
Joe Brillante
BR…Open your eyes Son! - Posted by Martin
Posted by Martin on June 12, 2000 at 23:53:06:
HEY BR!
LOOK AT THE EXAMPLE FORM “BUYING SUBJECT TO”
IT CLEARLY SHOWS YOU WHERE TO CHECK OFF THE COSTS TAKEN ON BY THE BUYER!!! AND IF IT COULD BE CLEARER THAN THAT…THEN I’LL EAT MY SHORTS!!!
Martin