Too Much Equity
It's interesting to find out how most investors on this board would handle this situation.
How would you handle this situation if a property you're interested in has alot of equity? Let's see the creative minds on the board SHINE. 
This may be a really creative idea: I'd buy. I'd leverage. Then I'd use that to buy more.
I think maybe I don't get the question.
??
[addsig]
If there's alot of equity, the homeowner might want to be compensated. How would you compensate him/her?
Would you structure a note? If so, what would be the interest rate that you pay him?
Would you give him a down payment and then finance the rest? Or no down payment and just finance the equity?
What if he won't take a note, would you just leave and look forward to the next property?
If they have that much equity they are certainly not going to be motivated. Sounds like a walk away deal to me.
[addsig]
Well, I wouldn't assume that if there is a lot of equity that they won't be motivated.
Have you asked the seller what price they want for their property? What is FMV? Before you try to structure an offer, find out what the seller's situation is - why are they sellling? What IS their motivation? What do they want?
There are uncountable ways to make offers, but you have to start with what the seller wants/needs. You might be able to gain a good portion of that equity with the right offer and/or the right seller motivation.
Good luck,
Noel
[addsig]
Believe it or not, I'm working on one right now that is a $210,000 home with No Loan! Owners have relocated and the house has been empty, on the market for a year, now they are motivated. It' might even be an all E-mail deal. More later.
Are they in foreclosure or listed on MLS - what is the scenario? I have many people who call me with equity, some are motivated and others are not. Are you trying to make the deal happen or is the home owner wanting you to make the deal happen. Very different scenario. Motivated sellers ask for very little, sellers with time and nice houses (regardless of the equity) want rull retail and conventional financing.
Brenda
Still working on it. The owner contacted me. House has been sitting for almost a year with no offer. Motivated but not going to give it away. I think it's in a flat market. My team is working on it. The dance continues.........
Marty
You didn't say what you want to do with the property if you get it. If you are going to keep it and rent it, you need to analyze what the cash flow is so you can make an offer that makes sense to you.
If you can find something they need that you can buy at a discount, you can offer this and pick up instant equity and maybe have them carry back a soft note for the balance.
I once tried to find a "mobile home" (at a big discount) because the seller wanted to live in a park near his wife's sister. I could not do this in a timely way. They accepted all cash at 60% of their asking price.
I'm really still feeling them out. I plan on finding a buyer to L/O or contract to at 90-95% FMV (212K). right now I'm at 80% adn figure I have to be at 70-75% to make the deal fly. But we are still just working on this by E-mail. I made an offer at 67% in NOO/cash, but that was turned down. Now we're working on terms and I won't talk $ until there is a tentative agreement on terms & I've inspected the property.
Did I mention this is my 1st deal? So far there's nothing out of pocket except for some computer time, and I need the practice on dealing. Worst that can happen is they just quit responding. No harm no foul.
Marty
This one probably belongs in another forum. Look for more details as the transaction progresses in the Sub2 forum.