A Lil Sub 2 Help Would Make My Day
I am buying a property through a land trust.
Its worth 132,000
It has a remaining mortgage of 99,000
The mortgage payments are 899.
I am paying 7,000 out of my own hard money for this contract from another investor.
I would like to sell this house as quickly as possible. A fast way is to do seller financing.
Any possible suggestions on how to structure this deal with a potential buyer? :-D
Since financing is in place you could sell via land contract or lease option.
If you are looking to cash out you could possibly create a note to sell at closing (see a recent article that was posted).
You didn't buy this property cheap enough for an exit strategy other than some sort of long term hold, in my opinion. $7k was too much to pay.
GOOD LUCK
Ralph,
Interesting to see the 'Shrewsbury" listed by your name. I lived in Worcester while in college.
As to creating a note.
Maybe. The problem is the note would be in second and deal is a bit complex.
Most not buyers avoid 2nds and if they do buy them they want a large discount. Hence if you flip this by selling using seller financing assume that you will be receiving payments rather then cashing out. To cash out is to pretty much make this deal a waste of your time. There is not enough room for a 'normal' discount on the paper and still leave you with cash in pocket.
RE investor (21+ years) with notes included in the mix. Hence this my advice is based on practical experience creating similar deals.
John
[addsig]
I am begginign to think the deal is to skinny. I started with 30,000 plus of equity. The guys wants to sell me the deed for 7,000. Now i have 23,000 to start with. Minus the 10 grand that I will need to pay the realtor in commision fees, I now only have 13 to start with. I think it would take probally arond 3 months to sell the house. ( 1 month to find a buyer, then for all the financing to go through). So thats already down to 10 thousand. Considereing that this house is in another state, I starting to think that its not worth my trouble of worrying about when the house will sell. Every month a grand gets subtracted from my 13,000. This is my first deal and I mean slow motion is bettre than no motion so I dont know what I should do.
if you don't feel comfortable with the deal don't do it. to me it does seem to thin.....km
Yeah 9-10 thousand in three months doesn't sound bad to me. But what do I know, I'm just a newbie.