Posted by Jim Davis on October 06, 1999 at 24:35:55:
Ron, if you have ok credit and can pay your own closing cost all you would have to do is have the owner finance the house to you and have the note sold to meet the sellers cash needs. Give me some details about the note such as interest rate, term etc.
and I can give you suggestions to make the note more markertable. I would be happy to talk to the real estate agent and explain what we do in detail.
Hope this helps
Jim Davis
Help! “Buying” a property by creating a note. - Posted by Ron F.
Posted by Ron F. on October 05, 1999 at 19:51:18:
I want to take advantage of the availability of an extremely attractive property in Scottsdale, Arizona.
The owner recently died and now it’s in the hands
of family who want to sell it. It’s a truly great
house that I want to own and live in… it needs some
TLC and updating. For this reason, it’s priced about $20,000 under market value. It’s listed with a realtor
who has determined that the sellers would be open to
a creative offer based on full asking price ($199,000).
I am self-employed and my business is new and currently in a real growth phase which is requiring a lot of creative financing itself. Therefore, I’m not in a position to
put any siginficant amount of money into the deal
as a downpayment.
It appears as though the seller would also entertain
a 10% carryback.
What I’m looking for are suggestions on how I might tie-up this property and get control of it through the structuring and sale of notes. Please, any help would be greatly
appreciated. I’m afraid this truly is one of those
that won’t last long. It’s been on the market for 15
days… average “days on market” for a house in Scottsdale is 39.
It can be done dependiing on sellers needs and flexibility - Posted by Michael Morrongiello American Note
Posted by Michael Morrongiello American Note on October 06, 1999 at 22:21:02:
If you have strong credit the self employed status does not scare us. The KEY is to find out what the sellers true cash NEEDS are not wants. All sellers want all cash, however what they will accept is very often a far cry from an all cash sale.
With a little bit of cash down and the sellers holding a properly structured purchase money note and deed of trust it may be very feasible to get them a sizeable amount of cash for their note at closing. This enables you to get into the home and make the deal happen.
Call us or visit our web site by clicking on the American Note banner ad above for more input.
Michael Morrongiello
Operations Mananger
800-659-2274
Re: Help! - Posted by Bud Branstetter
Posted by Bud Branstetter on October 06, 1999 at 11:19:29:
“a realtor who has determined that the sellers would be open to a creative offer based on full asking price” “It appears as though the seller would also entertain a 10% carryback.” What wrong with these statement?
It appears that the attractiveness is not on the investment potential but because you have an emotional attachment as your own home. You recognize the difficulty of a newly self-employed trying to finance with little down. With good enough credit a good mortgage broker may be able get you in with the 90% loan 10% owner carry scenario. If not a note may be the way to go but realize the rate will be higher.
Is the 90% of value because they know it needs updating to sell or because they want to sell “quicker”.