Posted by Troy Wood on August 21, 2009 at 14:31:18:
Good suggestion. I will look into it.
Owner financing - Posted by Troy Wood
Posted by Troy Wood on August 19, 2009 at 10:47:38:
Here is the situation. There is a genteleman that has a blanket mortgage on various properties in his portfolio. Two of them being mobile home parks, one being a 5 unit multi-family, and the last being two commericial buildings. He is selling all of his properties.
One of the Mobile Home properties has three commercial buildings on it and is a fair distance away from me making it not so desirable.
Ok. The mobile home park I do want to buy is 400,000.00. It has 16 units @340 per month. Two of the units are park owned. All of the units are full and current with their lot rent.
I have had a hard time finding money to purchase this property. I have 10% to put down and he is willing to carry 15% on a second mortgage. The park loan is either to small (400,000.00) or the park is not big enough (16 lots). The owner does not want to finance the full amount of the purchase himself becuase he is afraid that if the bank finds out they will call the loan due. Is there a way to get this park financed or a way that the seller and I could work out a financing arrangement as to not put his current loan in jeopardy?
Any help would be appreciated.
Troy Wood
Troy Wood
Re: Owner financing - Posted by mike ia
Posted by mike ia on August 22, 2009 at 24:23:16:
Set up a Land Trust to buy the property, this wont trigger the due on
sale clause…Read up on it William Bronchink or look in the archives.
How about split down payments over two years with him so you can
keep some of your cash, give him more than 400k, but at a lower
interest rate or vice versa give him 400k at a higher interest rate.
Numbers talk. Just remember to you, its not price that matters its
terms. Whats important to the seller is price. Figure out his
motivations and proceed. I always sit with the owner and scratch
numbers on paper. That way he can always see on paper where I
stand. Be creative. Think the impossible on this deal and make it
possible. It may be a reach, but you must think outside the box to
entice the sellers motivations. You can do this. Just understand you
cant win every deal, but you can try your dam*est to try.
Good Luck
Mike
Re: Owner financing - Posted by James Harris
Posted by James Harris on August 19, 2009 at 20:59:36:
How about a lease option?