Posted by Sean on June 04, 2000 at 08:58:46:
He wants to put an $80,000 first on it and sell it for, say, $70,000. Then $35,000 goes to the seller, $35,000 into his pocket and the seller gets a 2nd for the balance of the purchase price.
The question is how would a note buyer feel about this knowing that, on the one hand, they have a nice low-LTV trust deed but on the other hand knowing that not only has the person not put any money down, but he’s sucked money out at the time of close.
Selling Purchase money mortg/ would this work? – TerryV,JohnBehle, MMorrongielo ,ALL - Posted by Jason Perry_NH
Posted by Jason Perry_NH on June 03, 2000 at 17:47:06:
I am looking to buy a 6 unit residential property ( duplex and 4 cottages) – The appraissed value is approx $160000.00 – Seller wants to sell and will hold paper – I can buy for $130000.00 –
Has 1st mortgage of 50k
I want to sell a 1st on this prop of $80000 (50% LTV) for enough to pay off the first, and give me back $ to put into property (to increase rents:)
The seller would then take a second for 80k for their equity
Would this work? What kind of $ at closing would I get for this kind of mortgage?
Nice low ltv – I’d price the first at 10% over 20yrs with payments of 772.00—
Any help is appreciated
Jason Perry
Re: Selling Purchase money mortg/ would this work? – TerryV,JohnBehle, MMorrongielo ,ALL - Posted by Carol
Posted by Carol on June 04, 2000 at 07:05:20:
Jason, I will let the experts address the qtn of what you can expect to sell it for.
However, it sounds like you are going to assume (or tkae the property subjec to ) the existing 1st, and have the seller hold a $80 2nd? Then put a new 1st on it of $80k which you will cash out? Have you checked with your seller that they will be willing to have you put a new first on it, and subordinate to it? Be sure your paperwork specifies all that.
Carol