Could someone define this real-estate transaction?

General Real Estate Investing
1

There is a business partner I work with that has found a real-estate deal. It is a fairly typical house in a fairly typical neighborhood that costs about $140,000. Other houses in the area typically sell for $150,000 - $175,000 or so. The plan is to get multiple personal loans of about $20,000 - $25,000 to total up to that $140,000 price. Currently there is one buyer that might be interested in the home after he gets his tax return in a month or so.
So how would you all describe a transaction like this? First thoughts that pop into your head? Thanks.

Dean

2

I would call it a far fetched and hard to come by. Sorry if that sounds harsh.

I would think that it will be tough to get that many personal loans of that size. Not too mention a pain.

I would work on finding a better financing route.

3

What would this house sell for in this neighborhood? Is is possible that this house would still sell for $140K?

I imagine that you and your partner could get personal loans to make the downpayment that you would have to bring to the settlement table when you finance the purchase at 80% LTV.

Seems a lot easier for you to purchase the property Subject To the existing financing and have the seller carry back a note for his equity.

4

IT LOOKS AS THOUGH YOU WANT TO USE COLLATERALIZED PAPER TO MAKE THE DEAL … LOCATED IN THE COG SHEET … THERE ARE OTHERS THAT WOULD BE TO CREATE A NOTE AND SELL FOR CASH … I DO NOT KNOW IF THE SELLER WOULD FIND AN ESCROW THAT WOULD ACCEPT AND GIVE YOU THE POWER TO HEAL TO BRING THE SALE TO AN ALL CASH DEAL WITH INTERNAL FINANCING IT ALL DEPENDS ON YOUR TALENTS AS AN INVESTOR !

GOOD LUCK !

Shayshay000 Investor
Americas’ Finest City * ( motto )

5

What the hell are you talking about? Shayshay, I’d rather :banghead than read your posts. Seriously. This site is for people who want to learn and bounce ideas off each other. Your posts make absolutlely no sense to anyone but you. However, you do serve a purpose. We all need a good laugh now and then. :biglaugh :biglaugh :biglaugh :biglaugh :biglaugh :bash :eyecrazy

6

Shay,

Are you speaking in some type of code or something? Subliminal messages perhaps???

Please turn your caps lock off.

Thank you

Dean,

The personal loan part sounds kinda far fetched…

If you are just going to sell it to someone else immediately, why not just do an assignment of contract? and take the profits as your fee. I’m not too familiar with this type of transaction but I do recall it vaguely. In every purchase agreement, there will be a clause to allow the contract to be assignable or not.