Seller will finance...help me put this thing together

General Real Estate Investing
1
  • ARV $350k
  • Owes $85k
  • Asking retail price
  • Seller will consider taking his equity in monthly installments as long as I pay off his underlying loan at closing
  • Condition: good, ready to sell
  • GREAT highly-desirable area

Seller is nearing retirement and currently rents out the house to a friend at a below-market rent. He likes the idea of an income stream with no maintenance, repairs, and/or tenant headaches. I’m thinking pay off his underlying loan with private money and simply create a 2nd position note to the seller for his equity.

Since he wants retail this wouldn’t be a good one for me to hold, but I’m thinking why not put the deal together and simply assign it to an owner occupant for a down payment/assignment fee. I.E. a “mortgage assignment.” The buyer’s monthly payment would go to the seller and private lender in a split.

I’m not a big proponent of mortgage assignments but if it’s legal and I disclose EVERYTHING to EVERYONE why not.

Any thoughts?

2

Hi,

You know the answer to this without me saying a word!


          GR
3

:lol I already know!

I’ve since figured out how to make it worth me actually staying in the deal as opposed to assigning it. I just need to create a spread which shouldn’t be hard since we’re dealing with bigger (soft) numbers.

4

."
\ I’m thinking pay off his underlying loan with private money and simply create a 2nd position note to the seller for his equity. "

What if the seller doe not want/will not take second position?