How would I structure this? - Posted by Chris S

Posted by charley on July 04, 2000 at 12:57:36:

it doesn’t seem to me that there is much room to work with if he has to have his entire equity in cash. i don’t know how other investors work, but to me you’re not getting a very good deal (based on comps), unless he will take substantially less for his equity and take it over a number of years. if he won’t take less than $38k and has to have cash up front, it may also be very difficult to get a lease/option buyer willing to put down enough to cover the $38k. find out his situation (does he have to sell? why? divorce, etc.) you may have some bargaining room. for me, i would find out what my monthly cash flow would be and long term outlook (worst case scenario). is the house in good shape, is it marketable, does it have sex appeal? i know this is a lot to think about, but there are many factors to consider.

good luck

charley

How would I structure this? - Posted by Chris S

Posted by Chris S on July 04, 2000 at 12:20:38:

Owner has a house for sale. Asking $153,000.00 (Neg) Comps run in area of $148,000.00 Owner just re-fied for $115,000.00. Owner will sell subject to but wants remaining equity (approx $38,000.00) in cash!.

I would like to take this house subject to and either sell on a lease option agreement or provide owner financing for a period of time getting the down payment and monthly cash flow.

Suggestions Please. (note) I have poor credit, and no available cash to work with!

WHERE DO I GET THE CASH TO BUY THE EQUITY?

Chris

Re: How would I structure this? - Posted by Nate

Posted by Nate on July 04, 2000 at 16:21:51:

another way of saying it is: the house is for sale for market value, and the owner wants a 25% down payment to carry the balance. doesn’t sound like a motivated seller to me.

Why does he/she need the cash? - Posted by Doug Pretorius

Posted by Doug Pretorius on July 04, 2000 at 15:48:14:

If the owner’s going to blow it on a vacation you’re probably out of luck. But if they’re going to use it as D/P on another house perhaps they’ll take a note which they can then use in lieu of cash on their new home.

Sorry Chris - There is no deal here (as stated). - Posted by KennS

Posted by KennS on July 04, 2000 at 13:22:57:

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