Posted by David TN on July 01, 2003 at 14:53:53:
What is your purchase price.
Ask the seller if he is willing to finance his equity, or at least most of it. If not, see if he is willing to refinance the property to get his equity out and allow you to take the new loan subject to.
Which way can I proceed? - Posted by Leap of Faith
Posted by Leap of Faith on July 01, 2003 at 13:06:00:
I work with a guy who would like to sell me his house. He had a realtor look at it and tell him he should ask $120k for it. He wanted to give me first shot before listing with a realtor. The house is in near perfect condition and has tons of equity (he only owes about $49,500). His PITI is $698 on a 15 year note and he is current. I was unable to find any comps in this rural area just yet.
What other options do I have? I was hoping it would be a subject to deal, but I don’t have the kind of cash needed to pay him for his equity.
Thanks everyone.
Re: Which way can I proceed? - Posted by GL - ON
Posted by GL - ON on July 02, 2003 at 07:15:45:
There are at least 100 ways to do this deal, depending on what you are trying to accomplish. Let me ask a few questions and see if we can come up with some ideas to help make this a win/win deal for both of you.
Is is for an investment? Is it to live in? How is your credit? Can you get a mortgage? Do you own any other property?
If you don’t own a house, and you want this one to live in, just go to the bank and get a mortgage, give him the money, plus a down payment and you are in. That’s standard.
If you don’t qualify for a mortgage, have him refinance for as much as possible, put the money in his pocket, and sell you the house subject to. He gets the money, you make the payments.
By the way you already have found the gold - a seller who likes you, trusts you and is willing to work with you. Now all you need to do is figure out a deal that satisfies both of you.
If you give me more details of your situation and his situation, I can give you more ideas.
The best thing might be to find out what the seller wants out of the deal. Maybe he doesn’t need all cash, or he is going to use the cash for something you could trade him for.
There is always a way to make a deal that is good for both parties.