I want to buy the property at 123 Maple st. with low or no money down from the owner, Joe Seller. 123 Maple st. has an existing mortgage and less than 10% equity. How can I accomplish my objective?
Here's what I was thinking:
Joe Seller finances 100% of my purchase of 123 Maple st.. Because Joe Seller's bank reserves the right to accelerate his loan when Joe Seller sells the property to me, I contact Mike, a note investor who is willing to buy the note created from the seller-financed deal. At closing, Joe Seller deeds 123 Maple st. to me. I give Joe Seller a note. Joe Seller sells the note to Mike. Now Joe Seller has the money to pay off the mortgage he owes his bank.
Is this possible? Is this advisable? Is there another way to accomplish the same goal that you feel might be worth considering? Thanks everyone in advance!
why not just have Mike loan the purchase money to pay off the other loan?