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Updated over 7 years ago on . Most recent reply

User Stats

30
Posts
4
Votes
Kindrell Hutchinson
  • Developer
  • Gainesville, FL
4
Votes |
30
Posts

Closing on a owner financing deal!!! (3 properties)

Kindrell Hutchinson
  • Developer
  • Gainesville, FL
Posted

Hello,

I am a new investor. I am currently 2 weeks away from potentially closing on 3 properties using owner financing (I am the buyer). The terms of the contract is all 3 properties listed for $278K, with 45K down, 30 years fully amort., at a int rate of 7.905. no balloon payment. The seller wants to do a bundle mortgage for all 3 properties. All of the properties are rented and half are 100% HUD bringing in $3625 per month in rent. I am at the appraisal stage awaiting to get the reports back.

My question is, what should I do if the appraisal come back 5k, 10k, or 20k/greater lower than the proposed price? I feel like this is a very good deal but I'm not sure on how should I negotiate if the appraisals come back lower. The owner is a good guy but obviously does not play when it comes to business. I am a good communicator but, smart enough to walk away from a deal if it's not in my best interest. Hopefully you guys could give some advice. Thanks!

Most Popular Reply

User Stats

13,450
Posts
8,349
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Steve Babiak
  • Real Estate Investor
  • Audubon, PA
8,349
Votes |
13,450
Posts
Steve Babiak
  • Real Estate Investor
  • Audubon, PA
Replied

Any time you bundle multiple properties into a blanket loan, you want to have stipulations for releasing a property upon payment of some specific amount, so that you can sell a property off whenever you have some need or desire to do so.

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