Possible Subject 2 Deal Posted by: kenpgh customer service
Posted on : 10/23/2011 10:14:44 PM Hi William and others. I have a seller that is willing to allow someone to take over payments in order to sell her house quickly so that she can re-locate and be with her husband in another state. The problem for me is, she is asking to receive a portion of her equity somewhere in the transaction. Here are the numbers:
ARV: $140,000.00
Loan balance: $108,000.00
repairs: carpet & paint $3,000.00.
So, should I offer to give her a promissory note for a portion of the equity? If so, how would you structure this deal? What should I offer her? I have no cash on hand and would need a partner to give her anything up front. |
Reply |
 Re:Possible Subject 2 Deal Posted by: WilliamGA Still Master of ALL I Survey
Posted on : 10/23/2011 10:39:39 PM Ken,
The only way to go on this deal would be to get her to agree to take a promissory note for whatever you agree on regarding equity guaranteed by your entity (corp, llc, etc.) with no additional lien filed on the property.
You can make the case by letting her know you will be putting your own money into the property giving it the repairs needed.
I would make the promissory note payable upon the sale and cash out of her existing loan. This way you can pay her out of your proceeds when you close it out.
Once this was done I would probably approach her a couple of years down the road (assuming you aren't cashed out by then) about paying it off early for a discount. Sometime between Thanksgiving and Christmas is the best time to do this as people are always needing extra cash then.
Let us know how it goes...
William Tingle
www.Sub2Deals.com
williamtingle.com
williamtingle.us
williamtingle.net
How beautiful would this world be if we all practiced what we preached? |
Reply |
Re:Possible Subject 2 Deal Posted by: kenpgh customer service
Posted on : 10/23/2011 11:00:19 PM William,
Would I need to make monthly payments on a promissory note for the equity? |
Reply |
Re:Possible Subject 2 Deal Posted by: WilliamGA Still Master of ALL I Survey
Posted on : 10/23/2011 11:08:59 PM No.
Sorry I left that out.
No payments, no interest.
I have done this many times and if presented properly, everyone is happy with it.
She needs to sell a house that needs a little work.
You are willing to buy, at her price, giving her the money she wants. She just needs to wait a while for it.
She gets paid when you get paid and in the meantime, she doesn't have to make any more payments on that house.
Win-win.
William Tingle
www.Sub2Deals.com
williamtingle.com
williamtingle.us
williamtingle.net
How beautiful would this world be if we all practiced what we preached? |
Reply |
