Posted by Kevin Subbert on January 20, 2001 at 01:33:43:
Thanks for the advice. I would like to point out that my exit strategy didnt really change, but rather, went back to my original intentions that I had when I first heard of the location of the property. I wanted to hold the property but because I didnt have the knowledge to put the deal together to satisfy the cash needs of the seller, I had to go the route I did.
The seller had originally agreed to take 94,500 cash. I countered with 100k owner financed. Since he owned it free and clear he took it but added a 1 year balloon. That is where my exit stradegy changed. It was still a good deal, so I took it.
What I should have done was have the seller create a note with more favorable terms to me and have him sell it at closing for 94,500. But, Im just a rookie and at the time was unaware this was an alternative.
But, alas, if I must sell, then I must. I hate to lose a 500/mo cash flow but the $40K will help me get started.
PS- Im not complaining or defending myself. Im just posting this out for the benefit of others.