Posted by NC(NC) on July 11, 2008 at 10:13:08:
I am on the fence on this one. It seems like a great time to wait.
Buying at FMV even with 100% financing may be a poor choice.
Our market is trailing Florida by about 12 months so better deals will
be coming soon.
Owner financing(wrap) - Posted by HC(NC)
Posted by HC(NC) on July 11, 2008 at 04:45:07:
I am considering pulling the trigger on a possible wrap note deal where the seller is financing 100% for 10 years at 6.5 IO. Price is 295K
The building is new, very well built, and in a good location. FMV = 295000. It’s near Asheville NC.
I am thinking of selling it for 325000 at 8 or 8.5% with 10% down.
I am hoping that financing this property will create demand because of the difficulty so many people are having with financing right now.
If I can’t sell and have to rent then it will break even.
It seems like a skinny deal and I may be hanging too much hope on my financing adding value.
What is the value of seller financing in this market?
Re: Owner financing(wrap) - Posted by DP
Posted by DP on July 11, 2008 at 13:49:49:
I’m in Canada (the only country that hasn’t seen its housing market fall apart yet) and even here I’m finding sellers daily who will do 100% financing in the 3 - 4% range (amortizing too) if I pay them 100% of FMV.
So you should be getting much better deals than the one you posted.
Re: Owner financing(wrap) - Posted by Kristine-CA
Posted by Kristine-CA on July 11, 2008 at 09:32:56:
I’d look at your purchase price and the incentives offered by your seller
here. I think you’ve answered your own question about seller financing
adding value if you’re willing to buy something for 100% of FMV.
You may have to look long and hard for someone with 30K plus for a
down. There are definitely buyers with downs and who need seller
financing. But someone with 30K often has other options available to
Re: Owner financing(wrap) - Posted by John
Posted by John on July 15, 2008 at 19:42:12:
In this market you should be able to get a much better deal.
I use an owner finance program that creates a note that the seller can immediately cash out at closing for as little as a 10% discount off the face value. So the owner gets cash and my buyer buys at or very close to FMV.
Because of this, I can make mush better deals.