Sell via owner financing and sell the note - Posted by Jay(TN)

Real Estate Investing Real Estate Financing
1

Posted by GMann on December 22, 2002 at 09:35:40:

If the property is in the Knoxville metro area I would be interested in buying the property for cash and paying you a referal fee. Shoot me an email if it is in that area.

Thanks

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Sell via owner financing and sell the note - Posted by Jay(TN)

Posted by Jay(TN) on December 20, 2002 at 14:10:42:

I was recently contacted by a person who would like to sell a house. The lady and daughter co-own a property which has $55,000 left on the first mortgage. They purchased the home for $85,000 about 4 years ago. It is worth about $90k now. They are asking $65k. I am not interested in buying the house for a rental. They want to be cashed out as soon as possible. I believe the house does not need any work. I have no inspected it yet.

I see two options:

  1. purchase the home with a cash via line of credit, and resell via realtor at retail. Market is a little slow, so I might have to discount 10% for a quick sell, especially in the winter months. It would be a thin deal, though.
  2. sell via owner financing.
    create a first mortgage of $72k and sell note at closing for 90% of $72k, or $64,800.
    that would pay the current owners off now, and I would have a second mortgage of say $9000-13500 (10-15%LTV) + a down payment of $4500-9000 (5 or 10% down payment).

Ideally, if I sell via owner financing, I would try to get the buyers to qualify for a conventional mortgage, which would really be great.

Anything sound way off base?

Regards,
Jurgen