Convincing Owner To Give Purchase Money Mortgage
ok first time posting so thanks ahead of time.
well this is the situation im about to purchase a property for 1.8 mil and it appraises at 2.3 now as you guys all know that banks will only give 80% on the lesser of the 2. of course with all that equity i want to give as little as possible. so what can i do to get this done with as little down as possible. also what can i say to the current owner to be able to convince him to give a mortgage. like tax implications and spreading the capital gains like that. please help i really to want to lose this deal
Either get to know the owner or get a good broker negotiating the deal for you.
If you cannot have a sit down with the seller, start with a LOI that spells out what you want to offer, including the seller holding a second position.
I like to use the LOI to save time and money in preparing the commerical contract. Also good for putting out trial balloons.
If the seller has a broker and you do not - get your own broker to negotaite. You otherwise will have a tendancy to tell his broker too much.
Capital Gains tax only 15% - but this is one incentive.
Other issue - and this is a big one---what will the seller do with his money? You may be able to buy the property, remove this headache from him, and have him hold the first postion
These days it is much easier to buy a property from an investor if you help him figure out what to do with his money.
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