Paul…
I noticed you say you were going to refinance to lower the rate… Be sure you dont get hit with a pre payment loan… There are a handful of non conforming programs available but you being a broker I dont have to tell you… Anyway there are a ton of ways you can structure this deal with a seller as cooperative as you are implying… If they are willing to structure to your benefit as long as they get there bottom line you should have no problem closing this deal…
Douglas Timko notes4sale@yahoo.com
Mtg. Broker needs Creative advice!!! - Posted by Paul Macdonald
Posted by Paul Macdonald on December 15, 1998 at 22:51:49:
I’m pretty good at Fannie/Freddie rules and regs. And I know hundreds of non-Fannie/Freddie programs and lenders. But I’m just learning about such things as Lease Option deals. And trusts to hold and transfer real estate. I thought I was “creative” before I came to this board. I didn’t even know how much I didn’t know.
So I’d very much appriciate advice from some of the players on this board who think and act outside the arena I’m used to.
The Deal:
I’ve just struck a deal to buy a house. Its has a value of about 220k. Purchase price 185k. Seller will take back a 25k note @ 8% with a balloon in five years. We did not discuss amortization period on the take back. Seller has agreed to structure the deal “anyway” I want it so long as her bottom line doesn’t change. Any price, any contributions, any fashion.
The reason I want the property so much is there is a corporate tenant. This tenant has offered me a five year lease with my choice of two payment plans. Either $1600 per month and star
Re: Mtg. Broker needs Creative advice! Part II - Posted by Paul Macdonald
Posted by Paul Macdonald on December 15, 1998 at 22:57:31:
Continued;
The reason I want the property so much is there is a corporate tenant. This tenant has offered me a five year lease with my choice of two payment plans. Either $1600 per month and starting yr. 3 a 5% increase per year. Or $1700 per month for the term of the lease. Its a good deal. Not screamingly good, but this company has offered me three more deals in 1999 and I want them. So I’ll “settle” for a good deal this time for a great deal next.
My thoughts were to structure this with a 220k purchase, 25k take back, 6% seller contributions, 21.8k cash at closing to me, with a non Fannie lender. Than turn around and refi using a Fannie Freddie lender for the better rates and terms. If I go this route, what clause should I put into the contract that would force the seller to hand me 21.8k at the table? A decoraters allowance?
Am I thinking clearly? Is this the best route? Should I just raise the downpayment and go the Fannie/Freddie route?
I very much would appriciate any help and advice sent my