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Here’s the situation I’m encountering:
A lady I know needs to sell her condo that is worth ~$330k. Her current mortgage is $150k.
When she sells, she won’t be approved for a loan b/c of the impact COVID has had to her business this year, since she runs a home-based business that was affected.
My proposal is to buy her condo, subject to the existing mortgage, and then coordinate an owner finance transaction for her at another house (essentially, I have an investor that will buy this house and sell it to her and make 2% arbitrage on the arrangement. I will pay him the 10% downpayment and 2 years of monthly PI in exchange for the equity I’m getting in the condo property).
However, my concern is – I don’t want to set this lady up for failure if her business hasn’t recovered in 2 years time (or the taxes + insurance are too much).
Is there another way I could coordinate a ownership type of solution for her and capture some equity in the process?
Thanks for the help.
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