Could someone please write me a senerio of when a carry back would be used ina transaction. Is this a good thing for a seller or a new investor?
~Chantelle
A carryback is when the buyer does not have the full down payment and/or closing costs and you carryback the paper for a small amount for a short period of time save less than 15 years. You can leverage the note if it is good and use it to buy property that you want. Also, the rates as a private investor can be higher than the going rate the institutional lenders can charge and you can have a pre-payment penalty and so on. Marian
[addsig]
A carryback is when the buyer does not have the full down payment and/or closing costs and you carryback the paper for a small amount for a short period of time save less than 15 years. You can leverage the note if it is good and use it to buy property that you want. Also, the rates as a private investor can be higher than the going rate the institutional lenders can charge and you can have a pre-payment penalty and so on. Marian
[addsig]