How Does This Work?
I hear people all the time recommending that you get the seller to "hold back a 2nd." What exactly does this mean? And how would it work. Here's an example situation. I've found a commercial property. Asking price is 115k. I have 10k to put down. How would it work if I asked the seller to hold back a 2nd mortgage, what would the terms be, and how would I benifit? People talk about it likes its a great tool and I would like to learn how to utilize this option. Thanx
Here is one simple example of how someone might use this tool. Property sale price of $100K. You, for whatever reason, can only get a mortgage for $80, and you're putting $10K down. Seller finances the other $10K. Bonus, you create your own terms with the seller. Another bonus, doesn't go on your credit report. Just one, simple example. Z