Protecting Seller's Debt/Equity Ratio
Found a motivated seller who is extremely flexible. Has a good amount of equity but is willing to delay getting it.
He's in no trouble in terms of the existing mortgage. He just needs to relocate because of a job change.
I'm considering pitching him on alternative strategies such as a sandwich L/O or owner carryback of
a large 2nd.
I'd like to also pitch him on a subject to deal with him carrying back a note for much of his equity.
His main concern is that his D/E ratio not cause him difficulties when he goes for a new mortgage.
The sandwich L/O probably provides that kind of D/E coverage and documentation.
Not sure about the carryback or subject to alternatives though.
I'd appreciate any advice on how to provide him the D/E ratio protection he needs while keeping my personal $$ investment as low as possible.
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