How to Word Offer

4 Replies

How do you word this deal?

Purchase price: 500k

Hard money loan of 250k
Seller finance 250k

Forget interest rates and terms.

Do I just say 250k down and seller carry 2nd or do I have to specify that the 250k is coming from a lender. I know in syndication the syndicator doesn't express where the DP is coming from but in debt situations where is it specified.

I talked with seller and they said they don't care where it comes from as long as they get 250 at closing but I ranged to make sure I did everything right.

I know on financed properties you refer to all cash offer to indicate that the buyer will receive all cash at closing and a financing contingency usually indicates financing but not sure on the legal wording.

You want to express that the seller is in second place. Does he know you are getting a first? If the HML is securing his mortgage with the property then that does not resemble a cash down offer. Is this seller really dumb enough to do that?

@Ron Steele  You can use this structure and reword it

The Purchase Price shall be five hundred thousand dollars ( $500,000.00 ) which shall be paid at Closing (as hereinafter defined) as follows:

A) Seller financed loan $250,000 note. Interest rate 4.25% amortized

over 30 years.

B) Balance of the purchase price ($250,000) financed loan (Hard Money)

Good luck


Yes the seller wants to do it. The hard money lender wants to do it. He wants to get rid of the property bc it needs work and is poorly managed.

Your contract needs to specifically say that the owner will be carrying a $250k Second mortgage.  You want it to be clear, and agreed to in the contract, that owner is carrying a second, not wait until the closing table.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here