Posted by Michael Morrongiello on July 17, 2000 at 15:16:35:
Matt:
We would consider purchasing a conservative seller held 1st lien where the seller could convert that mortgage & note into immediate CASH at the time the property sells. He would then also retain the 2nd lien for income.
I would suggest you have (1)one mortgage for $20,000.00 instead of a 1st lien ($5K) and a 2nd lien ($15K), as the 1st lien only would be more marketable.
To your success,
Michael Morrongiello
Would this structure give the seller a quick source of cash - Posted by M. Zeits
Posted by M. Zeits on July 17, 2000 at 14:47:16:
Lets say I want to buy a house where ask is $100000. The seller needs cash immediately, and I will have the ability later to buy off high interest notes. Lets say I structure as:
$5000 at 18% for 5 years,
$15000 at 14% for 10 years,
$80000 at 7% for 30 years.
Can the two smaller notes be sold rapidly for reasonable %'s
to give a total fair market value of the house? like 85-90% of asking price?
thanks.