Posted by Ed Copp (OH) on February 17, 2001 at 20:04:28:
You might create a sellable note for the equity. Lets say that the equity is $20,000. You could create a note for a little more, so that it could be sold for $20,000 perhaps $23,000 (note). So the seller could then discount the note for cash immidiately. How well this works depends on several things. How much the property can be sold for is probably the most important. How much the note can be sold for is also important, and you need to have this figured out before you start. And how well you type…that’s how you get a note you know. Just take a blank note form and roll it into a typewriter, type in all the stuff, roll it out and sign it; that’s it you have a note. Finding a buyer for the note will be a little harder, but can be done.
There is a special (almost secret) rule in effect here, that is; “All rules have exceptions”.
What are my options when it comes to pulling the sellers equity out now, when buying the property subject to the original loan staying in place for 24 to 36 months.
Re: What are my options when it comes to - Posted by B.L.Renfrow
Posted by B.L.Renfrow on February 17, 2001 at 19:17:24:
You might consider having the seller refinance to pull out the cash, then taking title subject to the refinanced loan. Most sellers probably won’t go for it, but can’t hurt to ask.
You of all people should have been able to come up with a truly intelligent answer to this. We maby it’s just to tough of a question for you and your out of your league.
Posted by Ed Copp (OH) on February 17, 2001 at 19:30:02:
of choices here Jack, I just started off with the one that they like the best.
Cheking account a little short? Well O.K. been there and done that too.
You can always take on a partner to put up the cash for the seller. If you buy correctly you can sell half of the equity, and get a partner to put up all of the cash needed. An example would be the seller wants $100,000 (owes $80,000) so you need $20,000. So the house will need to retail for $120,000 or a little more. You buy for $20,000 subject to the $80,000 owed. You borrow the $20,000 from a partner who now owns one half interest in the house (put him on the deed with you if you like). Then you sell the house for $120,000 to the two of you less the $80,000 payoff, and the $20,000 returned to the partner. That leaves $20,000 to split with the partner. Lets see that would be $10,000 each. That would be another answer that might be useful.