You must be logged in to reply to this topic.
-
Hold on there Brian.
If the house is worth $400k are you buying it for $400K? Where’s the deal unless the 2nd is 0% interest rate?
Do you have a note buyer ready to buy the $190k note for $150K at closing? Is the note buyer aware that there will be a very large 2nd behind it? What kind of interest rate will the note buyer want? Will they want to see seasoning before they buy the note? Who is going to guarantee the notes?
Your payment (the end buyer’s) on the 1st and the 2nd plus taxes, insurance will need to be not more than someone could get on the open market.
Have you done any marketing to determine if there is a buyer for this scenario? If the buyer has to pay you an assignment fee plus the $400k ( in 2 payments each month) then they are actually paying MORE than retail in a market where below market houses are a dime a dozen.
The creative twists sound interesting but you need to take a lot of other things in to consideration too.
Jackie
Who has some ideas of what I can do with this deal?
Home Value: $400K
Home Free and clear and in excellent condition
Owner will accept $150K as cash payment to move
Owner will carry the remaining amount in monthly payments
My idea is to create for the seller a $190K note which he can sell for a discount to give him $150K
Does anyone have an easy way for me to figure out how much of a monthly payment I should offer him for the balance? We would want a longer term to him and a short term for the end buyer.
Is there a piece of software that makes it easier?
I was going to write up these terms in an Option and assign it to the end buyer for a fee.
What ideas do you have?
Thanks ahead of time,
Brian Netzel
Access Dream Homes, LLC
You must be logged in to reply to this topic.
