Hey Guys! I found a note the other day and I was wondering if you all could help me determine the relative value.
The seller has a first mortg. for 136k with an adjustable rate which is right now at about 6%. He also has a credit line in second position for about 150k but he told me he will most likely close it. So… I guess the seller took back a third mortgage and note for $890,900. Anyways… he sold his house through owner-financing… with a purchase price of $890,900 at 5% interest only. There is a balloon on it in 5 years for the full $890,900. I don’t know the payors credit score yet… I told him to find out for me and I’m not sure of the index which the first mortgage rate moves with… I’ll find out… the seller told me it moves slowly though.
Also… the first payment hasn’t been made yet… the seller is moving out in april and the first payment is due april 15. I also did a comparable survey and drove by a few recent sales… my determination is that its worth about 930k. Do you all think I should wait until the first payment has been made before selling it? Assuming the Payor’s credit score is good and the seller closes the credit line… how much do you think investors would buy it for? Do you guys see anything I’m missing? Thanks!