Posted by Mike on April 18, 2001 at 11:42:08:
You need to disclose that in the fine print on the purchase and sale agreement or it could be construed as fraud !
SELLER REBATE OK? - Posted by Misty
Posted by Misty on April 18, 2001 at 11:12:13:
Need advice,
I have a property that I’m very interested in. The asking price is $75000. I am going to try to get them to take $68000.
Spoke to a lender, can get 80% but at 10.5% but will have positive cash flow if:
And this is my question, CAN I DO THIS?:
Offer: $68000
1st Mortgage: $58400 @ 534.00/month
2nd Mortgage: $14600 @ 100.00/month @ 7.5%/balloon in 3yrs.
Request seller pay 6% buyer closing costs.
Request a seller rebate of $7000.
Seller’s bottom line is $40000 at close.
After costs and seller rebate, seller would have approximately $46000.
After closing I would have $7000.
The rents on the place are 550 and 380 which is 11160 a year. The taxes are 1900. Insurance approximately 600. If the seller is willing to rebate me the $7000, this would help my cash flow. Even if I offered them a higher interest rate, it would still be a good positive cash flow.
I wanted to ask you before I made the offer…
THanks so Much!!
Misty