Hi folks.
Need some help on my exit strategy. I have a property that I have taken sub2, 47k on the note, 17k in repairs, will sell for 102k. I am planning on offering financing of 32k (3yr note @ 9% with a balloon of 20k) on a second with the buyer getting a first for 70k. At closing, the seller’s 70k will pay off the existing mortgage, I get 6k (after repairs) in my pocket plus sellers loan payments to me.
–What happens if buyer decides to declare bankruptcy at some point? Do I not get anything until the first mortgage is released?
–Any specific clauses I should be sure and put in my loan documents to protect myself?
–Am I missing anything major?
This is a property in Texas. Any help is greatly appreciated. Thanks!
Brandon