Financing Options - Posted by Scrum

Posted by Ed Garcia on November 06, 2000 at 10:14:54:


There is so much we don’t know about this deal. Obviously to see sub-dividing and selling off the additional acreage, as the up-side to this deal. The first thing I would do is to find out what, and how long it will take to do this. If I could, I’d like to put this as a contingency of my offer, if it could work with in the sellers time frame. I would hate to see you run into a problem sub-dividing the parcels.

Once I’ve done that, I would then try to keep the additional parcels out of the financing if the appraisal would hold up on the farm house and parcel that I had plan to keep with it.

Now I own the parcels free and clear. That will allow me to sell them independently of each other with out disturbing my loan. That will give me the cash I’ll need to do the work on the farmhouse. If you are having the seller carry everything back, then you would still need to discuss release clauses on the parcels.

Scum, there are many questions to be asked when analyzing and structuring this deal.
If you would like, you can call me at (909) 944-0199 and we can discuss your deal.

Ed Garcia

Financing Options - Posted by Scrum

Posted by Scrum on November 06, 2000 at 08:58:03:

Here is my deal;

I have a property on over 10 acres to buy and seller is asking 170K. Home needs about 50K restoration work. Built in 1800’s it’s an old farm house. I’ll probably get the deal all in mortgaged for about 210K.

The property has 11 acres and I can subdivide into 1 or 2 additional 3 acre lots which will sell for 65-85K a piece. Once I sell the land, I would be in a 170K home for about 40-80K. Sounds pretty good on paper.

I currently live in a condo and I think I’ll make 20-30K on selling.I also have about 16K cash I can throw in as a downpayment. Total 35-45K dpmt.

My concern is how long it might take to sell the land once I buy the property. If I do not sell the land then I am a bit strapped carrying what could be a 170K mortgage. I want to live in the house and I am not really interested in flipping it.

I’ve thought about offering a 6-12 month option on the property but I don’t know if the seller will bite on that.

Any ideas?