Posted by Walt on March 25, 2008 at 13:50:32:
Yes
Ponder this scenario… - Posted by Stephanie
Posted by Stephanie on March 24, 2008 at 13:53:50:
What do you think about this…
A seller wants $125K for his home which is FMV.
He has a $60K existing mortgage
I ask the seller to defer total purchase price for 12 months.
I create a “private mortage” and take over his mortgage payments for 12 months for seasoning reasons (would that trigger a due on sale clause?)
At the 12 month mark I would refinance the loan and cash the seller out for the pre-determined price.
The seller is going to want some cash in the mean time (I would!)
So could I generate some cash with that $65k spread from that “private mortgage” and the FMV of the property? Would a private investor find that appealing?
Meanwhile…
Have a buyer lined up to purchase the property from me for lets say $3k down. Create a wrap around mortgage and collect payments for the next 30 years or until the buyer sells or refinances.
Any pearls of wisdom from the pro’s?
Does this make sense?
Thanks
Stephanie
Re: Ponder this scenario… - Posted by Walt
Posted by Walt on March 25, 2008 at 11:31:19:
If I were you, I’d run as fast as I could from this. When you buy at FMV, you are looking to take a whipping financially. Be patient and look for something at 65% of less of value. Don’t settle for anything less. Then you can make a profit.
Re: Ponder this scenario… - Posted by Stephanie Laning
Posted by Stephanie Laning on March 25, 2008 at 11:52:16:
So offer $81,250k bottom line. $125k x %65 =$81,250k
If they don’t like it move on right!