Unsecured Balloon Note??
Is there such a thing?
Hi everyone. I'm in the process of pushing a deal through and the buyer wants to know how I plan to secure the balloon note. That's a sticking point because I'm new to investing and have nothing to use to secure the note. Here's a snap shot of the deal:
FMV: $420,000
Purchase Price: $360,000
Paid as follows: $300,000 due at close, $60,000 balloon due in 6 years @ 6% interest only payable monthly or quarterly
Any help would be great.
Thank you,
Marc
The $60,000 note could be secured by the property you are purchasing with a 2nd mortgage (assuming you use a 1st to get the 300k) or a mortgage on another property.
Although it is unlikely the seller would agree, the note can also be unsecured.
Thank you. I guess I got a little spooked. Sellers seem fine with that.
Marc