Equity Share initial contact?
I would like to approach some likely prospects for doing an Equity Share deal that basically allows me to live in a very nice house by offering the seller of a house that is paid off today's market price for their house but only paying him Interest only payments so my payment is way way less than the market rent or regular financing would be. I would agree to sell the house in 3 or 5 years and give the seller the amount we agreed to 3 or 5 years earlier plus half of all the appreciation. So the seller gets his taxes covered plus a little cashflow while having me keep up the property and improve it and gets to enjoy the higher appreciation by waiting a few years to get past the bad economy we have currently instead of selling now at a low point and not making nearly as much. Obviously, the person who would do this is a rare bird but I'm sure there are a few out there. My real question for anyone who has done this or is in the know: how would I approach the subject with the seller, without them saying no too soon before hearing all the benefits? How do I frame it? Any thoughts? John-Boy? Anyone, Ferris Bueller, Bueller? Anyone?
Your only hope is someone who owns their house free and clear. If they have debt, interest only payments won't cover their debt service. When you structure any type of creative deal, you MUST keep the sellers needs in mind. It's called "win win" If it fits the needs of the seller then you have a chance.
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