All Forum Posts by: Paul Sassin

Can anyone help explain something regarding seller financing? If the seller still has a mortgage payment, is it still possible to workout a decent seller financing deal? What happens to that mortgage? I guess seller financing always made sense to me if the house was paid in full but when there is still a mortgage payment for the seller, I’m having a hard time seeing a good deal for both sides.

Thanks!

Paul

Thanks!! That helps!! I appreciate your time!! 

Paul

Appreciate the feedback, Aaron! One last q in regards to the first part of scenario A (John gives the 100K and you split the profit 50/50). Does John actually own 50% of the asset and only make his 100K back at time of sale and is paid the 50/50 split until then. Just trying to connect the dots on how John is paid back his 100K investment. Thanks again. 

Thanks for the Reply, I really appreciate it!

I believe I understand what your saying but I still don't understand how to structure a private deal in a way that could help me avoid the standard bank issues.   I would love to avoid 20%-25% down payments for each unit I buy.   I could afford a few more down payments but I would be maxed out at some point and I would love to keep cash in my pocket right??.  I'm Just not sure how I could take care of the investor, while still meeting my goals of owning the property and getting a good cash flow going.    

Please help me with one last question.  How would I structure a private deal that would work out for me, and the investor.  A simple example would be great.

THANKS!!!!!

Hey Guys, 

Recently bought my first duplex.  I have been working on buying my next.  I CAN get another loan from the bank, I have the credit and funds, however I have been researching the possibility of using private money.  I have possibly investors lined up.  However I'm not exactly sure how the numbers work for myself and the investor,  

Here are my questions

1. Is it better to leverage private money or bank?  Why?  Advantages and disadvantages?

2.   What should the investor expect in return? Is there a formula?

3.    Should the investor get ownership?

Thanks!!!!!!!!!!

Paul