Originally posted by @Brian Gibbons:
@Logan Turner
how did you get 44,000 owed? We're kind of first mortgage is it, is it FHA, VA, conventional ?
Try getting 50% of market rent for payment on Equity payments
Explain why you need 50% of rent collected to the seller
With current first mortgage is in place I like doing subject to the existing financing purchases with the note no payments for five years
What is the payment on the 44,000 ?
What is the sellers motivation to sell ?
Does he need the money today or can he take a note?
This business is about low all cash OR creditive deal with payments that can help you as a re investor feel comfortable about the risk
You could also look at Wrap around mortgages depending on the existing financing for an acquisition strategy
Hey Brian, thanks for the reply.
I looked up the deed on the property. The house was bought in 1999 but a mortgage was taken (HELOC perhaps) out on the home in 2013 for 44k. So perhaps its around 42 k owed. Just guessing based on public record. But, not sure the type of loan it is. I have not negotiated with the seller yet, and was trying to get my ducks in a row before i did, so i am not thrown any curveballs.
Not sure yet motivation to sell, other than listing it to sell in a slow market. I will find out if motivated or just perusing, but very few homes are selling and tons are sitting on the market for months.
Would the wrap around be: he still carries the mortgage of 44k, but we add to that (for example) a 60k mortgage that I'm going to pay? Basically I'm paying the 100k total mortgage but 44k is in his/her name and 60 k is in my name? Only draw back i see, is I am a 1099 employee (anesthesia business) but i have a credit score of 720-755 and a high income but not 2 years of tax returns, so no one wants to loan (except hard money)
And thanks Brian again for the tips and advice. Very much appreciated!