Owner Financing When %100 Equity
Hello,
I am not sure if this is the right forum for this, but here it is:
I have this motivated seller who is moving out of state and needs to sell her house which is in excellent condition. She has %100 equity as she has owned the house for years. She wants close to the FMV, so I am planning on owner-financing. I want to get the deed and need to do a small Down payment along with 30 yr loan %6 interest. I have done flip/rehab but no owner financing yet. So how do I make this happen? any ideas?
thanks, hrash
Quote:
On 2003-08-06 13:11, hrash wrote:
Hello,
I am not sure if this is the right forum for this, but here it is:
I have this motivated seller who is moving out of state and needs to sell her house which is in excellent condition. She has %100 equity as she has owned the house for years. She wants close to the FMV, so I am planning on owner-financing. I want to get the deed and need to do a small Down payment along with 30 yr loan %6 interest. I have done flip/rehab but no owner financing yet. So how do I make this happen? any ideas?
thanks, hrash
It is going to depend on the seller and the rapport you have with her. The selling points to her would be a steady income vs. cash only earning 2% in the bank, Capital gains only on the portion she receives per year, sells now, no more property taxes and insurance premiums, and she gets all the interest the bank would make. Points to also bring up are 100% of FMV, less 7% Realtor fees, less 3% closing costs, less 5-8% (whatever you are comfortable with) for negotiations. Nobody pays full price do they?
[addsig]
thanks alot for the reply .... very helpful tips.
I was wondering if I have to use a wraparound mortgage or just a simple note done at the closing table? The deed is being transferred to me. What is the kind of paperwork I need to make this happen. Of course, I already have the agreement getting ready to sign.