Am I Crazy?

(am i crazy) -> That's more of a rhetorical question...
I have a rental on a (owner contract) 51,500 @ 10% w/ a good renter and turning a modest profit. My mortgage holder wants to sell the Note. So, after contemplating, I decided to present mortgage holder with an offer to pay cash at a discounted price (as, we ALL know, anyone buying notes has to eat too). So, I offered my mortgage holder 45k cash. To which, he says he has too much time invested in Selling this note. But, he'd be willing to CANCEL selling the note, if I agreed to go ahead and secure other financing and cash him out what's owed on the Note (51,500). Anyways, the house is worth 72,500 ALL day long... So, I was thinking about asking him to CANCEL selling the note, and then make the offer of 56k, CASH him out at 48k and get a promissary NOTE for the other 8K, or as "new carpet, roof, whatever allowances".... But, NEED to know how to get this written up...Because, I already rehabbed this property (so, I don't need to replace/fix ANYTHING!)...
Or, some variance of this.... So, I can POCKET the cash at closing.
<IMG SRC="images/forum/smilies/icon_confused.gif"> <IMG SRC="images/forum/smilies/icon_confused.gif">
THANKS IN ADVANCE!
[ Edited by jchester on Date 08/23/2003 ]

Comments(5)

  • DavidBrowne27th August, 2003

    Do you have a deed on the property, If you have an option and are going to loose the house, and have put work into the house, and have no baloon or pre set agreement to buy this owner out, and you have done improvements at this point I might consider putting a lien on the deed to get your intrest back . Then would never again improve someone elses property.

  • DavidBrowne27th August, 2003

    Do you have a deed on the property, If you have an option and are going to loose the house, and have put work into the house, and have no baloon or pre set agreement to buy this owner out, and you have done improvements at this point I might consider putting a lien on the deed to get your intrest back . Then would never again improve someone elses property.

  • jchester27th August, 2003

    thanks for the reply!

    Yes, I have a deed on the property.

    And, have the new financing lined up at 6% on 20yr note... But, was curious how to I would handle getting CASH back... As, I already have a NOTE for 51k. How do I present this to the new lender in a way that makes sense, so I can get some cash out...

  • donanddenise31st August, 2003

    If the house is worth 72,500, why not just refi the house yourself at 80%LTV and take the 5000 left over(estimate) and pay him his 51,500 and go on your merry way. Maybe I am missing something here?

  • jchester31st August, 2003

    Well... Texas is an odd state to refi in... You can only "cash" out up to 3% on a refi... Which of course in this case would only be about 1500....

    Thanks ALL!!

Add Comment

Login To Comment