Owner Finance 10% Down
The buyer is looking for an house to add to his portfolio. he has 10 % down but he wants payments low so he can clear $150 cash flow. Now my situation is
125k fmv
950 rent comps
110 pay off
80% LTV - 10% down
10 year finance w/balloon payment could i do it like that? with intent to sell the contract.
Ok, what are the payments?
Moroca,
What do you mean by a 110 payoff and 80% LTV? Do you have a $110,000 underlying lien (88%LTV) and you are looking to get a 80/10/10? (80% first from bank, 10% seller carry and 10% down)
Hey there,
If you want to sell the contract, you need to own the property ( no sandwich lease options) and have deed in possession AND I would need to know what buyer's credit score is and credit profile, and understand the property/collateral that the new note would be secured against.
You would want to amortize over thirty years to keep payment low for this buyer, with no balloon, depending on the property. I find that investors like to start seeing balloons when the collateral is less and less desirable, so if this is single family house, or even two to four units, balloon would hurt the deal rather than help it, IF you are intending to sell the contract at closing via simultaneous close.
Not sure what you mean by 80% LTV
Generally buyer would need to have very good to excellent credit to create marketable paper with rates in line with the kind of cash flow he wants, which he is likely not to get when you add in taxes and insurance
Let me know if I can answer any other questions. My best, Dave