New Investor, Need Help In This Situation
Hello. Here is the scenerio. There is a FSBO 2 year old ranch on my street for $189,000 comps are running from $204,000 to $212,000. I called the owner and talked to them and found out they are having another house built which will be done in 6 weeks and they do not want two payments. I asked if I brought a all cash offer what is the lowest he would go?? He said $178,000. We could get a T/B in there within 30 days, the only issue is the owner would like to have about 10k of the equity at closing for his new house. How do you get the seller access to his equity before the T/B executes the option? Is that done on a restructure of the original mortgaage? How would you pros handle this one? :-?
Not an expert in L/O, but here's a technique used sometimes in sub2: suggest the seller either do a $10K cashout refi, or a HELOC for his equity, then you structure your L/O payments based on his new monthly payment.
If he goes for the HELOC, make sure you have him cancel that when you sell it to your buyer: even after you pay it off from the proceeds of sale, that doesn't always close the HELOC account.
Andy
Yes at what stage do you do a refi on the property? So if the person really needs some money out of the deal is that pretty much the way many people to this with the seller is do a refi (which could be a good thing) or a heloc? That way they have money in hand and get out of the monthly payment???
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