Subject to, but small loan - what to do?

[James Park]

Hi all,

I've purchased properties subject to, and I understand how it works.

I am currently looking at a deal where the sales price is $290K and there is an existing loan for $150K. The loan is fixed at 3% over 30 years and has about 27 years left. Obviously an awesome loan to take over and the seller is fully willing to let me do so.

Problem is the $140K shortfall.

I can either:

1) Come in with the $140K cash - obviously don't want do this

2) Find a loan for the $140K. But what private lender is going to want to come in second, and what bank is going to do it knowing there's a first with someone else's name on the loan?

3) If I can find a private money lender to do a 2nd mortgage, they will need a high interest rate. Probably at least 10% if not 12% or more.  I guess this isn't the worst thing, since the low rate on the first mortgage would offset much of the higher rate on the 2nd.

4) Refinance the entire property at whatever I can get - 7% or so.

I'm just wondering if there is a solution where I can really take advantage of the low rate on the first, offer the property out to buyers with a wrap loan and drive up the asking price because it has built in financing with a fantastic rate.

Any ideas shoot them over!!

And Thanks in Advance!