New to Real Estate · Dallas, TX · Member since 2019 · 10 posts · 2 votes
If a seller refinanced a house at around 220k and has about 120k left in mortgage, but the house also appreciated to 450k, how do I structure a subto/seller finance deal?
I'll subto his existing mortgage and pay off the 120k. But as for the seller finance, would the loan to the seller be the difference between 450k and the refinance number of 220k? Or would it be the total equity - so the difference between 450k and remaining mortgage of 120k?
I'm trying to structure a deal for the seller but the real estate agent won't submit my offer to the seller because they don't think the offer is beneficial for the seller. But I just want to start the conversation so we can negotiate the terms so it's beneficial for both parties. But because the seller won't share my offer to the seller, me nor the agent knows what the seller wants. (sorry just venting)
If a seller refinanced a house at around 220k and has about 120k left in mortgage, but the house also appreciated to 450k, how do I structure a subto/seller finance deal?
I'll subto his existing mortgage and pay off the 120k. But as for the seller finance, would the loan to the seller be the difference between 450k and the refinance number of 220k? Or would it be the total equity - so the difference between 450k and remaining mortgage of 120k?
I'm trying to structure a deal for the seller but the real estate agent won't submit my offer to the seller because they don't think the offer is beneficial for the seller. But I just want to start the conversation so we can negotiate the terms so it's beneficial for both parties. But because the seller won't share my offer to the seller, me nor the agent knows what the seller wants. (sorry just venting)
I'm not an agent so I'm only going by what I've been told. ;-) If the seller tells their agent not to bring certain types of offers to them, the agent is obliged to follow their instructions.
However, I've also been told that an agent has a fiduciary responsibility to present all offers if not told otherwise. Trouble is, how do you find out what that particular seller told that particular agent?
There are ways to get to the seller that don't violate the buyer / seller relationship. I won't advocate for them here, but it can definitely be done. Just plan on paying the agent's fee if you are successful. If they have an legally binding agreement, you need to honor that agreement and pay the fee.
If you failed to mention to the agent that they are going to get paid, and then explained how, of course they won't present the offer. It's part of their contract to get paid and not getting paid is a violation of the contract.
Property Manager · Oviedo, FL · Member since 2013 · 18 posts · 8 votes
1y
@David Sohn It depends on what your purchase price is. If you’re offering $450K, then you could offer to take over the $120K payments and seller finance the remaining $330K. Of course you have to factor in realtor and closing costs on top. The real issue you should address up front is what does the seller want? Are they really willing to sell and walk away with zero dollars up front? I assume their realtor knows they wouldn’t and therefore isn’t going to bother submitting your offer.