Posted by Dalton on November 25, 1998 at 21:36:02:
I my self had a deal like this, I got the seller to take a 2nd of 5k less then his equity then QC deed. My note was 633.22 for the duplex. Got in the house with no money down L/O 3 days later for 3k down each side and was paid 450.00 a mnth each side.
Bottom line if the seller is taken back a 2nd to cover his EQUITY “fart” on him L/O both sides with a good down and mnthly … and dont pay him a penny down
Well you will need to buy his lunch when this is a done deal …LOL
I’m looking at buying a duplex where the owner is willing to take back a second mortgage which equals the first mortgage. (sale price= 60k, existing mortgage=30k, equity=30k) Are there any negatives to having the owner take back a second while i rent out both units?
Also, what are some ideas to make this a no money down deal?
Re: Negatives to second mortgage? - Posted by Paul Macdonald
Posted by Paul Macdonald on November 26, 1998 at 07:26:25:
Hi Kraig,
There are no innate negatives to having one or twenty mortgages on a property as the borrower. It’s all a matter of cash flow and terms to you as the borrower. To a lender its a matter of cash flow and LTV and credit.
If I had a property worth 100k, had a first, second, third and forth mortgage against it of say 50k per that would sound pretty bad. But if my payments on all four notes was $25 per month that would sound pretty darn good. It just depends how you set up your house of cards. I’ll let any seller set the price, without qualm, if they let me set the terms.
“Also, what are some ideas to make this a no money down deal?” - this sounds pretty darn close to a no money down deal now. What expenses other than an assumption fee and closing costs (don’t forget to get title insurance) do you have?