Seller wants all cash deal -- any alternatives? - Posted by Chris Lewis

Posted by Reif on April 07, 1999 at 10:33:54:

Read it twice, missed it. Sorry.

Reif

Seller wants all cash deal – any alternatives? - Posted by Chris Lewis

Posted by Chris Lewis on April 06, 1999 at 15:00:34:

In the course of looking for L/O deals I have come across an owner with a 2br 2ba condo, in a nice area, FMV $75K, that she owns free and clear. She has a tenant in it paying $720 a month (should be $750 - $800) until July 1, 1999. She will sell for about $70K (she paid $86K in 1988), but doesn?t want any continuing involvement such as carrying a note, ILC, or L/O.

She is ?fairly? motivated ? she keeps calling me to talk about it, and definitely wants to sell, but she doesn?t need the money in the short term ? she just wants rid of the responsibility.

Has anyone got any thoughts on a creative solution to this, other than me taking an option and marketing it (which she is happy to do)?

For example, is it possible to create a note and sell it immediately, without discounting too much from her $70K? If so, how is a deal like this structured?

I have a good “buyers” list for L/O & ILC deals on condos, but most would not qualify for a conventional mortgage. The buyers I have who would qualify want townhouses/SFRs!

Any help will be very much appreciated.

Chris Lewis

Re: Seller wants all cash deal – any alternatives? - Posted by David Alexander

Posted by David Alexander on April 06, 1999 at 15:29:14:

What is the balance she owes, at what interest rate, and what are the payments?. It probably has a NQA assumable loan on it, that’s good. If the payments are low enough, just take the loan subject to. In essence, if she just wants out, take over payments, get the deed, sell with Owner Financing. Otherwise, walk because there is no deal, at least that I can see.

David Alexander

Re: Seller wants all cash deal – any alternatives? - Posted by Chris Lewis

Posted by Chris Lewis on April 06, 1999 at 16:39:10:

David,

Thanks for your comments.

She doesn’t owe anything on it – she paid cash!

Chris Lewis

Re: Seller wants all cash deal – any alternatives? - Posted by David Alexander

Posted by David Alexander on April 06, 1999 at 19:08:07:

Sorry, you had said that, must have been groggy from a big lunch, LOL. Find out what she is going to do with the cash, when you find that out you will then be able to structure a deal. Maybe she only really needs 10, 20, 30k or something. You could then make a series of offers depending on how cash you give her. for Instance if she says she has to have 20k, you could offer 65k total with 20k down and 45k in a year or two. If she wants say 35k you could offer say 60k with 35k now and 25k in two or three years. If she is adamant about price you could offer say the full 75k, with say 5-10k down, interest only on the rest with a ballon in 2-5 years. The object of course is to find out what she wants and give it to her in a way that you can make a profit.

David Alexander

Re: Seller wants all cash deal – any alternatives? - Posted by Jim IL

Posted by Jim IL on April 06, 1999 at 17:37:16:

Chris,
See just how little CASH she’ll take at close. Not for the home itself.
Then, have her take back TWO notes, and sell one at close for a cash discount.
She gets her CASH, and you get “seller financed”. Win/win!

Then, resell the home with a wrap or L/O, so that you get a balloon payment later BEFORE you need to pay her off on the second and the note buyer off on the first.

You never know until you ask.

I’m in the process of trying to work that sort of thing here now.
good luck,
Jim

Re: Seller wants all cash deal – any alternatives? - Posted by Reif

Posted by Reif on April 06, 1999 at 23:57:56:

Seems to me we have to know what this place is worth, FMV, before we can REALLY propose a solution.

Reif

Re: Seller wants all cash deal – any alternatives? - Posted by David Alexander

Posted by David Alexander on April 07, 1999 at 10:11:37:

Read the top post, he has all the info posted.

David Alexander