Cash Out From The Seller
hi,
i am thinking about to put an offer for an house. i have a question about how to get cash from the seller.
if my bank is willing to finance 100% of the purchase price, and the seller is willing to loan me $250k,
But I do not know how to close the deal and to get the $250k from the seller. once the deal is closed, the seller may have no incentive to fulfill his lending promise $250k. he may chose to not lend me the money any more.
how can I get the $250k cash? what to do in the closing process to make sure that I get the $250k?
i think some people know how to do this, some seminars teach people special technique to handle this case.
if you have any info or direct me to any source, please let me know.
this is urgent.
thanks a lot.
joseph
washington, dc.
Run 2 escrows.
1. You Buyer, seller is seller
2. You borrower (with a 2nd Property), Seller is lender on the 2nd Property.
Seller does not carry back on property he just sold you.
Escrows are Concurrent. (Using same Escrow Co.) One cannot close without the other closing and Vice Versa.
If you close one the other must be closed at the same time.
Pmatheson:
Please forgive me if I seem I grew up riding on the short bus to school. I find you ideas about concurrent escrows fascinating but you lost me. Could you please help me to understand what you are talking about? I would love to impliment this approach
thanks
Pmatheson:
Please forgive me if I seem I grew up riding on the short bus to school. I find you ideas about concurrent escrows fascinating but you lost me. Could you please help me to understand what you are talking about? I would love to impliment this approach
thanks
There are two ways of doing this legally.
1. You must identify moey for repairs, or services. You can provide a service such as financial advice. Anything you take will be taxable.
2. Buy the home now for the lower sales price and wait 6 weeks. Have t home reappraised and get a new mortgage at the higher price. Mortgage law allows you to take money back on something you already own.
**Please See My Profile** (assisting buyers, sellers and investors for 30 years)
OK, so here is the bottom line. You cannot buy 8.5% caps if your cost of funds is 10%. Always try to buy at least 2 to 3 points under your cost of funds.
Well usually a bond like this is because the city or some other governmental entity loaned them money to keep or create jobs so you need to be careful abou the terms of the bond to make sure they are allowed to sell the property.