The Rule says: “Preventive Law is a whole lot cheaper than Curative Law…”
Yes, if this is your first time doing such a deal, don’t be pennywise and poundfoolish. Have a COMPETENT real estate attorney draft the note, trust deed, warranty deed “subject to”, and any other instruments that you will need to accomplish your goals, any consider their fees a learning expense.
How do I make this “WIN-WIN” ? - Posted by Rob MacFarland
Posted by Rob MacFarland on November 14, 2000 at 08:46:18:
Fellow “former” Marine and retired Secret Service wants to sell his townhome to buy in another state.(i.e. needs to have this under contract, NOW!) I think I can make it into a GREAT rental and am trying to figure a win-win offer to present to him. I can assume his VA loan (100K balance @ 7%)and “renew” his VA eligability (by using my avail. VA balance), comps in the area are 150K. 20K for his equity would give me 75-80% LTV . (he tells me he needs no cash for next home) My thought is to ask him to “carry paper” for the 20K for a zero down, positive cash flow deal, and still get him his money … eventually. What rate of return is proper to ask for when he carries? 5%? 10%? and can most real estate lawyers draw up such a document? Thanks.
Maj Mac
Mac:
If you are asking him to carry a 2nd lien for his $20K then consider that the repayment terms are fully negotiatble between you and him. You can start the negotations by pointng out that if he had $20K in a savings account it might earn around 5% -6% currently. Since you are friends and a good guy offer him slightly more and see what he says.
Re: How do I make this “WIN-WIN” ? - Posted by Rob MacFarland
Posted by Rob MacFarland on November 15, 2000 at 07:33:52:
Michael,
I was thinking along the same lines … is a local real estate lawyer the best to draw up such documents to make it legal in MD, “xxx county”, etc.?
Mac