Creative finance when seller has mortgage

[Account Closed]

Seller owes 150k on a 400k 3 unit.

He’s interested in seller financing to defer capital gains.

What creative financing option would make the most sense for he and I?

Seller finance, sub to, wrap around etc. and why?

[Derek Dombeck]

The answer is dependent on what you both want the most. For example, do you want more or less control? Do you trust the seller will make payments on the existing debt or do you use a 3rd party servicing company? Are you concerned with his current lender calling the note due on sale? What is the sellers age and if they pass away, will his heirs understand the deal you made? Etc.....

After you get all your questions answered, then you structure the deal accordingly.  We can all give you advice on BP, but we don't know any of these answers and are just guessing about what is best.....

Personally, I like the wrap around mortgage with a 3rd party servicer handling the monthly payments to keep everyone honest. You should have the ability to payoff the 1st position note in the event that they call the note due though.