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Updated about 4 years ago,
Exit scenarios for my REC?
Hey everyone I currently have a duplex I purchased under a real estate contract using owner financing. I am for clarity purposes trying to nail down the best exit strategy.
I can sell the property outright to a new buyer
Refinance the property and take out some equity (this option wouldn't be a reality for a while longer)
Potentially flip the contract to a new buyer that would have to agree to the current terms of my note (10yr 4.5% 5yr 5k baloon)
Regardless I would like to take some equity out or exit entirely to reinvest capital elsewhere.
Any suggestions?
I personally like the idea on finding someone to take over note however I am unclear with how this works.
Is it safe to assume I would take the difference between appraisal and loan balance and new buyer would take over the note responsibilities?