Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 2 years ago,

User Stats

14
Posts
2
Votes
ST King
  • New to Real Estate
  • Jacksonville Florida
2
Votes |
14
Posts

Seller offering to hold a note on 3 duplexes

ST King
  • New to Real Estate
  • Jacksonville Florida
Posted

I have a potential deal in which a seller is selling three duplexes and is offering to "hold a note" for 20% down of the agreed upon purchase price, on a 5 year balloon at 10% interest.

First, I think "hold a note" means that this is a seller financed deal, right?  Or maybe they're just agreeing to finance the 20% down?  Can someone clarify what this means.

I've looked up that a 5 year balloon means the entirety of the loan will be due after that 5 year period is up.  So the mortgage looks like a normal loan for 5 years then "balloons" to the remainder balance becoming due once that period is over.  Is that right?

Assuming the properties are in good condition, in a desirable location, and cashflow well, how good a deal is this to start out my portfolio?

Any help is greatly appreciated.  Feel free to dumb it down for me, too.  I'm new here.

Thanks!

Loading replies...