Roshe Run Women Floral Blue
You can get away with offering a higher price IF you able to stretch out the amortization of the loan and/or negotiate a 0% interest rate.
how do I bring it up to seller
How do I bring up the idea of owner financing without scaring her off. Not sure how to approach her.
Sell the tax aspects, pays on the gain of the sale, if any, as it is paid, not all up front as required if she got cash. So she earns interest on Uncle Sam money.
One way to negotiate this is to help the seller understand that if they are willing to accept payment for their property over an extended period of time, you can pay them a price above market value. You can use phrases like, "You can add these payments to your long term retirement plan" or something to that effect.
Show the total she will receive with interest.
responsibilities of repairs, maintenance, screening tenants, collection of rents, clean ups, advertising and all the phone calls. SF gives her less income but less headaches too. She still has an investment and can earn above market rates than she would otherwise get. Could be close to the same if she were to get a manager. Her down side is no more appreciation but she can make more on the interest as regular income. You could pay for the discount, but again, look to the value as I mentioned above. Usually, a LL doesn need cash for another property, but could be the case.
BTW, as a non owner occupied residential deal, the SAFE Act may apply, so see an attorney to protect both of you really, her problems could become your problem too. :)
If she doesn need cash, then stress the note as a better investment for her than any other she could deposit funds into after taxes.
Given this, it important to know what your maximum monthly payment can be because this will give you the parameters that you offer needs to fit within. As long as the monthly payment doesn exceed your known limit, you can pay any price and/or any interest rate that will get the deal done.
I just made a cold call on a turnkey duplex in my market. Owner loves the property. Said its been a great money maker over the 17 years she had it. But sounds like she would be willing to sell at the right number. I don have the 25% to put down for a conventional mortgage.
Landlords may want out, SF is a great way to get out of the ownership Roshe Run For Girls Kids
If you can make it work with your investment plan, offer the seller a higher bid. If the property is $85k and the bank will finance you 75%, then that a loan of about $64k. If you don have $21k + closing costs, let call it $24k, and can only put down $16k, as the seller to take back a 2nd, ask the seller to carry that $8k shortage + an extra $8k to be added to the purchase price.
If the seller doesn need to be cashed out at closing, you can usually explain your offer in such a way that actually sounds Nike Roshe Run Nm Breeze White Black Hot Lava
Bottom line seller financed properties usually go for a little bit more because the seller defers his chance to be fully cashed out at the market value of his property.
Seller financing is not always possible, so you need to do some digging into her financial needs from the sale, if you can overcome the requirement for cash, then SF is possible. If not, then it not a deal for you. Don get personally tied up with a property, it has to be a deal or you need to move on.
price if the value is really there. Show the difference between what a cash offer might bring after taxes, if any, compared to your deal as an investment for her.
Note: One thing to keep in mind is that as the investor your 1 priority is to buy a property that will cash flow (and ideally, one that will cash flow very well). In a sense, this means that the price and interest rate you pay is only relevant to the point that the property will still have positive cash flow after all revenue expenses are factored in.
"With this offer, I am calculating your interest into my offer price. This way, you won't need to report any part of your payments as "interest income" to the IRS."
You get the idea. A lot of times banks don like a subordinate mortgage because it increases the risk of defaulting on the first mortgage due to cash flow issues. It helps if your market is on the rise because it will naturally inflate your equity and you will be less likely to walk away from it easily. Still, 16k down on a $93k purchase isn terrible.
more compelling than selling for cash.
Landlords are usually receptive to SF as they have been collecting rents and working the property, many like to sell as their retirement income, probably the easier owners to get involved in seller financing.
Offer to pay for a loan servicer to administer the note so she has no duties, just pick up her monthly payments or have it deposited to her account.
I think there are a few ways to approach this kind of conversation.
Financing NEVER adds value to the property, except to the extent that other financing would cost! You Roshe Run Women Floral Blue pay much more with a balloon payment early on it won appraise out to refi it. So you need to nail down the real value, look at the amortization and ensure equity will be there to meet any future obligation.
If a seller is willing to finance the property, there are all kinds of innovative ways you can make the deal work for both parties. Again, at the end of the day, the main concern to YOU is whether or not the property will cash flow (which is all contingent on what those monthly payment ends up being).
Geeez, gotta disagree with everything Lupe said, other than asking the seller to carry a second, but absolutely not like that. His bottom line statement is predatory lending, never go there.
How motivated is she to sell? You need to show the deal as a win win. She can have full Nike Roshe Womens Black
So you buy the property for $93k, get financed by 1st mortgage for $64k, have seller carry $16k at some reasonable rate for, i don know, 3 5 years, and you put down $13k + closing costs.
Roshe Run Women Floral Blue
Retro Nike Roshe