Help With Owner Carry

Could someone explain owner-carry.

I bring in a new first mortgage LTV (60%) of the purchase price and the seller carries back the balance as a second mortgage for the balance of their equity.

I would find and end buyer (i.e. tenant-buyer or flip to another investor) and the option payment would cover some of the second or most of it?

OR

Would the Seller actually go to a lender and get a 2nd mortgage?

Any help I would appreciate it.
Thanks.
Carol



[ Edited by CarolG on Date 01/18/2005 ]

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