My wife's aunt was over for dinner last night and she (knowing that I'm a real estate broker) asked me if I would be willing to sell her 4-plex that she owns here in Portland, Oregon. After a short discussion, I asked her if she would sell it to me to which she responded "that'd be great!"
We are going to get an appraisal to determine the value. Once we have that number, I need to figure out how I'm going to purchase this thing. I assume the appraised value will be between $500K-$550K and I don't have 25% of that in cash. She has $260K in bank financing.
My question is, can I get a seller carried note in this situation with the bank debt in place? Are there any other forms of creative financing that I should pursue?
I appreciate your help!
Hi @Robert McEachern I don't know the specific rules for Oregon but the short answer is yes. You can either do with a full wrap or have your aunt-in-law take a subordinated note. She can either keep the note and collect the payments or you can sell the subordinated note (or wrap) to note purchasers. If you're going to sell the note, it would need to yield enough so you wouldn't have to discount it too much. Let me know if you have any additional questions.
I agree there are lots of ways to do it. If I was in your position I would wrap the mortgage and have her seller finance the rest if she is willing.