Posted by cokeacolas on December 24, 2005 at 14:52:54:
I now it is a simple answer for you, but I’m learning.
THANK YOU FOR SHARING1
Duplex/.For Sale - Posted by cokeacolas
Posted by cokeacolas on December 23, 2005 at 10:02:38:
Hi Everyone,
I have a guy who is motivated in selling his duplexes. However he has several properties under one mortgage and needs to see if his bank will release them. The problem is my lender will not finance the duplexes unless thay are 100%. The seller does not have the money to bring them up to 100%, I may be willing to do this however how would I do this and still protect my interest? Its 4,000 to 5,000 to bring them up. The numbers work, so them how many ways could I get this to work? Your help is greatly appreciated and HAPPY HOLIDAYS!!
Thanks,
Let Me Count the Ways… - Posted by Randy (SD)
Posted by Randy (SD) on December 24, 2005 at 13:58:23:
The number of different ways you can put this deal down are limited only by your imagination and creativity. If the seller is truly motivated and his lender will allow him to release this duplex from the blanket mortgage, buy on terms.
Take control of the property with an “exclusive option to purchase” agreement. I assume you have an established purchase price, draw up a three-month (or shorter) option agreement, record your option agreement (this clouds the title) due the repairs and go get your bank mortgage.
Buy on a contract for deed, amortize the purchase price at 7%-9% over 30 years with a one year baloon, one consideration here is when you go for bank financing it will be a refinance not a new purchase money mortgage confirm the qualifications, rate and terms for a refi vs. a new purchase. Also a contract for deed can be sold in the secondary market for cash, if considering this option the balloon payment must be a minimum of seven years.
Buy with a seller financed note and deed, inform your seller he has the option to sell his note in the secondary market, now you don’t have to qualify for bank financing-the seller is your lender. This note can be sold immediately after closing (simultaneous close) or with a few months of seasoning the seller will get a better pay price. Again use a thirty-year amortization with a seven year baloon at 7-9% interest. Utilizing either the contract for deed or the seller financed note and deed have an escrow company draw the documents and close the transaction, get a lender’s title policy (with your seller as the lender) have a minimum of 5% down payment, if you’re buying non-owner occupied you want the first lien to be 80% of the ARV.
Lease option-self-explanatory