I Want To Flip And Own A Second Mortgage Instead Of Cash
Here is a hypothetical... I have contract to buy a property that is worth $250,000. I am paying $200,000 cash. I have a BUYER who will pay $200,000 cash, with no down payement, and I will loan him the other $50,000. I know that it is good to consult a Real Estate Lawyer, so please don't recommend that I do that. I just would like to know how, if I was stupid (8-) ) and wanted to write up a contract for the loan and for a 2nd mortgage on the property, how would I go about doing that? Could someone give me a step-by-step?
Thanks,
Odo Staples
I am assuming that the buyer is getting a $200,000 loan to buy the property. You said he is paying cash with no down payment and that sounds like a loan to me. Not sure what the lender will need in order to let you do it but some will allow owner financing as part of the purchase price. The buyer will sign a note and deed of trust at the closing and it will be recorded at the court house. Also the deed should have the information about the loan too. The title company can handle this for you. It is pretty normal
Good LUCK and Thank You
Hope this helps some
Ted Jr
If you wish to take a 2nd mortgage, as Ted said, the attorney or title company handling the closing should be able to take care of the filing of the lien.
In order for it to be accurate, you should supply them with all the necessary info in detail. Things like interest rate, length, balloon, amount of payments, etc. Most important, double/triple check their forms/numbers to insure that they are correct.
Roger