Exit Strategy - Posted by David Alexander
Posted by David Alexander on December 13, 1998 at 01:06:39:
Guess, what I’m asking is what exit strategy?
Details are as follows:
33k balance on Contract for Deed, comps are 43k.
Owner financed would sell for 48-52.
payments 340\PITI, currently rented 475\month
3 months left on the lease.
Seller wanted 2k to walk, I’m told him I’d give it to him like this, 800 up front(which will actually only be 500 because there is a 300 dollar deposit from the renters he would have to assign me), and he carries a note 1200, no payments, no interest, that I payoff within three years. The Contract for Deed is wrapped
around a mortgage that was taken Subject To. There is a Due On Sale Clause in the Contract for Deed. The Investor that has the contract is local.
I’ve thought about just lease optioning it as thats not
covered in the DOS Clause. Then due my best to actually get someone to qualify for an 80-85% mortgage
of better. Whike I’m at it I thought I might try to
option up the CoD at a discount.
What would you do? I know 10k isn’t alot of room, but
hey 10k transactions will work for me just fine.