Posted by Michael Morrongiello on March 23, 2000 at 11:43:52:
Jason:
If you are confident the home will appraise at $191,000.00 and that you can sell it for that price to a “retail” owner user buyer who will occupy the home as their primary residence then there are several ways for you to assist this seller and profit. Here is one idea:
Get her under contract for her $151,000.00 sales price ALL CASH (or negotiate the best and lowest purchase price you can). Build in some time for inspections (10-14 days) and also an extended closing date 45-60 days out.
Now, once the seller is under contract market the Home AGREESIVELY to a “retail” buyer using our Owner Will Finance AD suggestion.
Screen the calls and find the BEST buyers you can that is willing to purchase for the $191,000.00 sales price and can put down 5% cash or preferably 10% cash and who also have good employment stability and credit.
NOW, we structure a purchase money mortgage and note with terms that are acceptable to you and these buyers for the $171,900.00 amount still due.
This note if structure properly can be liquidated at the time of closing for 93%-95% of its balance in CASH.
Along with the buyers down payment, and the cash funded for the mortgage we would then pay off the motivated divorcee on her $151,000.00 - the rest of the funds are PROFIT.
Michael Morrongiello