I have detials on this property posted in the commercial section. Now another question is that the seller wants to be on the loan with me because he wants to be in position to take it back if i dont performe. how do i write it up as so to protect me/ give me full control to manage as i see fit and not have to get is permission?
He also is willing to give me as much as $25,000 back from the proceeds for the security of getting the property started with capital. The lender will not give me back any cash pre the sale, so how do i write up and secure the rebate so the seller performs as said?
One more thing, does a signed cotntract give me exclusivr rights for the deal? or can he still take another offer if one happens?
I am not very clear of what exactly you’re trying to do. If the seller gives you money back at or after closing without the lender’s knowledge is loan fraud as far as I know. If that is not what you’re trying to do, ignore me I misunderstood.
Either you are misunderstanding, or the deal seems a bit weird.
I suggest that you talk to him long enough to understand exactly what he wants to do, and that you get a good real estate lawyer to represent you and to go over any and all documents before you sign.
I have never in my life heard of a seller who wanted to take out a loan and have his name on the mortgage with his buyer, so I suspect that you misinterpretted something somewhere along the line.
Just being responsible for the mortgage will not put him in a position to foreclose on you.
OK, The seller is selling the property because of health, and doesnt want the day to day issues.
He wants to sell the property or he will refinance it himself. He needs $35k to get him straight with what he has for outgo/consolidate. Im looking for $200k from HML to get cash to payoff 1st of $150k and give seller his needed cash.
Now the seller wants to be in a position that if i fail with payments to the Lender that he would be able to take over the loan without the hassle of foreclosure or deal with getting the property back. So he said for his security, that he wants to co sign on the loan with me. Basically im buying the property from him for a set price, but were partners on the loan for the security purpose of the seller.
I need to know how to set it up that i have control of the property? I dont want to have to ask him for permission on anything. If he’s on the loan,doe’s this give him sayso in decisions i make?
Now for the rebate, can he rebate me (buyer) for the purpose of upkeep needed on the property? Paint,carpet, etc. Again he mentioned this also, as he would still have a steak in the success of the property. I will not do anything illegal for any purpose, so can this work?
Iv never had a seller suggesting and open to this scenario, so all advise is welcomed.
you are buying an income property…
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the deal is you are both on the loan, this is how i understand it
new 1st mortgage $200,000
Seller gets $35,000
You Get $25,000
But he has an existing mortgage of $150,000 to be payed out…
it doesnt add up, But i get your point, at least I think…
the terms of this deal is fricken weird, but never-the-less if it works i cant see why not…lol
why the heck would this dude want to be on the loan and not on title or is that what he means???
If you are seroius about this deal, feel free to call me I can help engineer it for you…
The deal can work, but you need more education then this space will allow me to type…
Peace !!!
Being on the loan won’t make it easier for him to “take back” the property, it will only make him responisble to make the payments along wtih you. I suspect you two are misunderstanding eachother. Also what you mentioned confused me, if you are paying off the first and getting him his cash why the insistance on being tied into the property? Its also unlikely you will get a hard money commercial loan with the LTV’s you mentioned.
Ok, i do think the hard part of this one will be the financing, as it always is.
The ltv for this one is less then 50% of the tax value. so im shooting for a go for that reason. Now as for the parties involved, all are in conjuction and understanding of it. The property is producing income and able to support the new financing with a positive cash flow which are all a plus to the lender.
I know its never a deal till the check is cleared, so any other thoughts or ideas for the financing and how to cover myself are appreciated.
Land contract it for five years and then buy it. You get control, he is only in the know because of the debt service owed. Everybody wins. This is a perfect candidate for this option.
The way that you presented that was confusing. Please restate what you’re trying to do. Who is going to be buying it and for how much? How much does the seller want? How much are the comps (not tax values)?
Hassaner,
Im trying to purchase this property, and yhe seller wants security that if i dont perform, he will be able to continue making the payments without forclosureor any issues.
He will refinance alone get the $200,000 out that he needs. Pay off the first of $150,000, keep $50k and then add me to title and i will then take control of the property and manage accordingly.
Im buying the property for $535,000 he will carry back a second for $335,000.
There are no real comps for size and layout.
One’s that have sold are either unit’s or comm space alone.
What i have is from a realtor and no real comparables.