Posted by mike on May 06, 1999 at 20:50:45:
why dont you refinance it? make it at least a 5 year note in case your guy falls out. you can pledge your equity to a new seller of a property that you can refi easier perhaps, pull your cash out of his place…
what would you do on this one?!? - Posted by Matt-MO
Posted by Matt-MO on May 06, 1999 at 20:42:20:
HI all–
Found a buyer for my rehab. Details: I have $64,400 +/- invested (all cash). Buyer offers to pay my asking price of $78,900 with 10% down but wants me to owner finance the 90% for 3 years (balloon).
I’ve held this darn thing 6 months now…it must go and I want this deal. No commission to pay and a good profit vs. my “average” deal. I, of course, need my cash out to continue doing other deals. I wouldn’t be opposed to taking back a second, but buyer says he needs time to get through education etc… Has parents backing him up (he’s in his 30’s, not 20’s). I don’t want to create a note just to sell it and lose my profit. That wouldn’t make sense. Would a mortgage broker (yes, I’m calling you tomorrow Laure 
) cash-out refi this even though I’m selling on contract for 3 years??? I know a bank would have that DOS clause but how about a mort. company? Don’t know how to get my cash out of this thing on this deal!! My brain isn’t working–help!
Matt-MO
Re: what would you do on this one?!? - Posted by Irwin
Posted by Irwin on May 06, 1999 at 21:08:49:
I’ve been there and done that. You have to have a friendly banker (or rich friend) who will loan you 80%. This will get your $64k back out plus the cash down payment. You still have to carry the balance out of your cash, but that’s like money in the bank at interest. Speaking of which, I suggest you make the interest rate painful enough so that he’ll be looking to mortgage you out ASAP. If you give him soft terms, he’ll take you to the last day on the contract.