Hello All,
I'm a newbie to BP and reside in Long Beach, CA. I have been scanning and reading the site for the past month and cannot believe the treasure trove of experience and insight from everyone. I wish I had come across this website earlier. But I am here now and looking to clarify my goals in Real Estate. Multi-family properties (Long Beach and SoCal area) and Notes are what I am keen on learning more from this group. In the meantime, I am selling our family condo in Arizona and wanted to present the details and possibly obtain some feedback.
We have an offer on the unit and we will be providing seller financing. The buyers have solid credit history (near 800) and stable tax returns. The personal returns show only moderate income and certainly could not qualify (based on standard loan to income ratios) and afford this condo. However, they also have two businesses in which they do well and run many expenses through these entities. They seem to be a bit hesitant to open up on the details of the business to show the income and ability to pay the mortgage and repay the loan (5 year balloon). This is beginning to raise some flags in my mind and I wanted to get some advise from this group as to how much documentation I should obtain related to the business and how much weight I should give to the business, assets and income. My goal with this seller financing is to sell a portion or entire 1st position package after closing so DD is important. I want to be sure I ask all the right questions and obtain the info necessary to protect our interest and that of a potential note buyer in the future.
Here are some particulars negotiated on this deal:
Husband/Wife buyer - Credit (790), no late's and mortgage on primary home. Tax returns for two yrs.
(This is a vacation home for the buyer)
Appraisal - pending, should appraise at or above sell price.
PP - $318K
Down - $69,000
Fixed Rate - 5.5%, 30 yr amort, balance due in 5yrs.
1st Trust Deed position
Will be serviced thru Escrow including impounds for T & I.
Thank You in advance....
Cheers,
Scott
