Updated over 1 year ago on . Most recent reply
Borrowing against a property I sold on a contract for deed
I am exploring my options for borrowing against a property that I am the legal title holder to. The buyers have been paying on time and have not missed a payment since the purchase closed on 7-26-21. They have actually paid down extra principal every month. They pay me $2,969.80 on the first of every month. The sale price was $500,000. The amount financed by me was $450,000. The agreed upon interest rate is 5% amortized over 40 years, but in reality the buyer is reducing that to 30 years by paying 2969.80/month. The balloon is due 7-26-26. There is no pre payment penalty. The current balance as of 8-1-2024 was $406,301.27. The property value is at least $600,000.
I am looking to the community for advice and/or connections to someone that might offer me reasonable terms. I'd like to free up some cash so that I'm ready to close on the next great real estate deal that I track down.
Most Popular Reply
I think that your best bet is to offer the Holder of the Contract for deed some sort of discount if they refinanced out of the contract for deed so you could get your equity, short of that I don't think you have a lot of options.