Can I Work With This Buyer?
Here is the scenario, I purchased this house subject to with the intent of resale. I have about 127k into it(includes repairs of 3k and reinstatement of 15k and the mortgage balance) and have it on the market for 163K. I received a call from a DR. that asked if I would owner finance(with 20% down) or lease to own. The mortgage payment is 1100. After recouping my investment I was planning on using the profits as a down payment on another purchase. Is there any way to work out a deal with the Dr. and get my initial investment out, along with some of the profit?
Can you refinance?
possibly, but not sure for how much and it would probably be a HELOC
You say you have 127k into this house? So just getting the 20% down would not give you your money. How did it happen that you have so much into this house on a subject-to? (you don't have to answer that, I'm just thinking out loud)
Hi jllaco,
If the DR has 20% down, what would keep the DR from getting a conventional loan to cash you out. Even with shaky credit, if they have 20% down the chances are good that they can get financed. What is their situation?
BAMZ
I'll clarify, the balance on the loan is about 107K plus my money into it is another18 or so. 127k was really the balance of all money invested and owed. I'd like to get my profit and original investment out, around 50k.
Supposedly, the Dr is opening a new business and I assume they do not want to stretch their credit any further...just a guess, but there could be a lot more behind the scenes??
Hi jllaco,
If he doesnt want to get financed now for one reason or another, tell him that you will sell it to him on contract, however you will need 30% down in order to facilitate te transaction.
Based on your $163K sales price, this would give you $48,900 cash. It wouldnt hurt to make the contract amoritized over 30 years, but with a balloon payment in 3-5 years. This way you can clear out this transaction and be done with it!
Best of Success!
BAMZ