I was wondering if it’s possible to re-finance a property that you have tied up under a wraparound/seller financing? If so, how?
For example: if the seller want’s 100,000 for a 150,000 property and is willing to hold the note. The buyer offers 105,000 with an option to purchase at a later date.
Also the same question but aquiring the property through a land trust. Where the seller makes you beneficiary of 90% and they are 10%.
A side note:
*I had what I thought was my first motiveated seller from sending out postcards. But after meeting him at the property it turns out he was an invester trying to wiggle his way out of the sour deal he signed up. Needless to say, I wished him luck and walked away.
The percentages are not pertinent to refinancing or selling the property. Since the property is held in a trust, the decisions are made by the trustee. You can own any percentage you want, what the trustee says goes.
I own property that way. The only reason the percentages are set up that way is some liability protection. Say the “tenant” sits on the toilet and his leg goes to sleep and he tries to stand up and falls down and sprains his wrist and ends up with a doctor’s bill of $100. If he sues the property owner for the $100 and wins. The property owner is the trust of which the owners of the trust pay their prospective percentage. That means I pay $10 and he pays $90.
Thanks Blue. So you can NOT refinance if you are just a beneficiary or have the property tied up with an option contract?
If your strategy is to rent out the property how might the buyer “cash out” the equity under one of the above techniques?