What’s better - my money or seller financing? - Posted by Tim
Posted by Tim on February 27, 2001 at 13:53:04:
I have the ability to put down 10% on a 3-family property. If I do this, it leaves me with plenty of cash for a couple of other properties I’ve been looking at (I have a home equity line of credit). What’s more advantageous to me; putting up 10% of my own money or trying to get the seller to carry a note for the downpayment? My thoughts are that the seller will probably want a higher interest rate to carry the note - maybe 10 to 15%. My home equity line of credit charges 8% interest. I don’t consider this too high. Obviously, I could get into a property much easier with using my own money but I just don’t want to go down the wrong path. Am I missing something? With using the Home equity line of credit, I feel that I’m not being too creative to do this deal. Maybe that’s a good thing, I don’t know.
Any thoughts would be greatly appreciated. Thanks