Updated about 2 years ago on . Most recent reply
Subject To/Seller Finance-Hard Money
Hi I'd like to connect with hard money lenders in the Nashville TN Area. I am looking to do a SUBJECT TO/SELLER FINANCE hybrid deal and want to put together funds for the renovation. I found out about this strategy through real estate investor Pace Morby.
Owner has had this rental since 2003 and doesn't want the headache of managing tenants anymore. I came down last week from Az to get some pictures of the inside and she needs some TLC.
Market Rent ($2,200-$2,500) (Reach out for address!)
SUBJECT TO the Existing Bank Loan Current Loan balance: $85,000
PITI: $850 Interest rate: 3.9%
SELLER FINANCE/TERMS
- Purchase Price: $300,000 paid to seller at $500 monthly PRINCIPAL ONLY payments (600 payments over 50 years) - (seller collects passive income and doesn't pay capital gains tax)
- $500 Payments to Seller will start after the REHAB. $850 mtg payment would be paid during renovations and vacancy (estimated 6 months)
ENTRY FEES:
Title close $3,700 Servicing company $250 Rehab $67,000
Monthly Holding costs:-MTG $850-utilities $300($1,150 monthly) x 6months rehab ($6,900) Hard Money loan $77,850
(what type of interest rates do you charge? what could I expect a monthly payment to be?
Most Popular Reply
@Ashton Travis
Why would a seller do this? 600 months at 500 is $6k. A year- they will have to consider 5% of that interest and pay taxes on it
They could sell this home for $120,000 cash and put it in a cd making 5% on that and be better off.
This is problem when people read these books etc - there is no reality in it.
- Chris Seveney
