Structuring Sub2 Deal....help Any1
I have a seller selling his house FSBO.
Im(the mortgage co I work for) doing the loan on the house he wants to buy. He owes about 185k on his current home and is asking 235k for it. I can only get him 95% LTV for the new home, due to circumstances, so he needs to use proceeds of sale for the remaining 5%. Would this be an a good opportunity for my first investment, and if so is there a conflict of interest. If this is an opportunity could you help me with some advise on how to structure this deal?! Thank you for any help you can provide............one more thing.......this site......WOW!!
Everytime I read these forums I become more and more motivated. There is nothing but top of the line advise and ideas............this site reeks of $$$$
Thank again..................Ryan
You need to show him that selling through realtor wil only get him a little more than 200K for it after closing costs, points, realtor fees, holding costs, paint, cleaning, whatever you can think of...etc...
The you have to find a way to give him the difference of the number you get above and his balance, say, for sake of argument that's 20K.
Do you have any way of getting hime 20K for his equity? Either 5K now and a note for 15K, or 20K cash (ouch), or something inbetween. You can always offer less too, haha! How motivated is he?
Best of luck
Sam
Thanx for your reply............he is pretty motivated..........want his new house bad.
the remaining 5% he would need is $12500..........I could come up with that just by taking his house sub2 then refi for the 12500.........is that right...would that work?
Thanx again!!!
Tell him to refi out the 12K with his current mortgage company, and wrap the closing un the refi. This means you will get the house at 200K. Then you can take it off his hands and you sell it at 240K next years price, beacuse if you owner finace or L/O it will close next year anyway. Close'em
Sire
Thanx for the ideas........I will try and put an offer together and let you know how it turns out.........Thanx again!!