Re: Seller wont sign option/FIRST COME FIRST SERVED - Posted by Stacy (AZ)
Posted by Stacy (AZ) on April 05, 1999 at 21:03:11:
I don’t really understand what this guy wants. Does he want to see a $15K cashier’s check? If you know it’s a good deal, give him earnest money and pen a contract to purchase, not an option. Then assign your contract to your investor. That should be commitment enough; as good as a check.
If he’s got some sort of reservations about signing a contract, and you know this is a great deal, I guess you could always get a hard money loan for the $15K, with no prepayment penalty, but there goes much of your profit up in loan costs once you assign it and allow room for your investor’s profit.
Is there a reason he wants the $35K note? Possibly for tax reasons? If not, I’d separate myself from the pack of offers by negotiating an all cash deal (hopefully for less than $50K), and get it under contract. He’d probably like to get all his cash at closing, but is trying to make it more attractive offering owner financing. If your investor is good for the cash, and you have worked the numbers correctly, I would definately go for the cash deal. But you’ll have to find-out if this is more attractive to your seller.
Remember, a financed $35K is worth much less in today’s dollars, so the cash deal should be less than $50K.