Creative financing opinions
Does anyone have some input on the following.
We've changed the numbers, but the structure is basically the same.
$2,000,0000 real estate contract.
to be paid as followed.
Original downpayment
$25,000 paid in 2006
Payments below will go into an escrow and then released as a payment towards the contract.
10/31/07
$50,000 payment
1/31/08
$50,000 payment
4/30/08
$50,000 payment
7/31/08
$50,000 payment
Close date
10/30/08
Balance due $1,775,000
Seller financed $400,000
Bank loan $1,375,000
We want to cover the $50,000 payments with a line of credit, only paying the interest monthly, and only using what is needed.
Does a $200,000 line of credit make sense in this situation? Or should I find an investor to fund the $50,000 quarterly payments?
Thank you for your input!