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How to do seller financing with a loan on it
Question for the group. I have 1 million dollar property with about 500K left on the loan. How can I sell it with seller financing if the bank already has a note on the property. I can't afford to pay off the 500K myself and either can the tenant for a downpayment. Any solutions on how to structure a deal like this?
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You would need to get permission from the bank originating the new loan. You would be in the second position. It's technically not seller financing, which means you have 100% equity. It would be considered a seller carry back.
The buyer would have to come in with some down payment money, you create a note, and the buyer would have to secure bank financing.
My good friend Bill Ham wrote a book called Creative Cache. Talks about seller financing and master lease options.
Gino
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@John McKee
Some states allow a contract for deed to be done with and existing mortgage (and some do not), that is the most common way I see this occurring. That’s probably best way as a lender to keep title in your name but in many states you still may need to foreclose on the cfd -
What state is this in (please don’t say DC)
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This is a commercial property in Virginia