Financing Question, Please Help!
Seller wants 30K, owns house free and clear. Would it make sense to offer 25K for the house, put 5K down payment and see if the seller would finance the rest for 3 years at 300 a month. Then at the end of the three years I pay them the difference?? My next question is if I did this, would and could a bank refinance my loan so I can pay the seller off??? (bear in mind the balance will be less than 20K) BTW.. the house is a duplex so I plan on renting each unit. Thanks in advance
Yes, you can do that. Whether the seller says Ok is another story.
If he/she needs cash NOW, you may try to help by finding a note broker to buy the note he creates for you. You may have to bump the price up to make up for the discount.
yes, you can still refinance. If you can get tenants in both sides that will really strengthen you position with the bank.
Good Luck!
You have many different options at this point. But to figure out those options, you need to solve the owners "problem". The "problem" is he no longer wants the property, so it begs to ask....what does HE want out of it? 30K I know, but is that ALL up front? or would he be willing to do 100% financing for you? Or a combination inbetween those 2 extremes.
I'd try to find out what the min. amount would be for him to take, then have him hold a note for the rest.
OH....and this could be a big OH....whats the FMV of this house?