Rental Property Investor · Arlington Heights, IL · Member since 2017 · 243 posts · 108 votes
I'm wondering if anyone has been able to structure seller financing before where they pay interest-only payments for like 15 years and then a balloon.
I have a lead on a property in a B area of the Northwest Chicago suburbs. It's an area that's had some depreciation and the current owner has lost 25% of the initial value he bought it with ten years ago.
But the balloon payment Im thinking still would be doable as a sale even if there was a similar depreciation.
I think it would be more money that he could sell it for. Also, it could be tax beneficial with part of the estate income from interest For me, it would cash flow better. Rent would be 2.3%. Sounds like a win-win to me.
Investor · Chicago, IL · Member since 2016 · 160 posts · 41 votes
9y
@Peter Halliday I have tried the same but hadn't had any success yet...may be due to sellers being aware of market is better now and they don't want to carry the note when they can get buyers willing to pay market price..But I have a lead where seller is willing to pay 25% down payment for the lender that I chose and I will pay him interest only until I can refi out, possibly in 6 months or so after the normal seasoning period..will see how it goes and let you know.
Rental Property Investor · Arlington Heights, IL · Member since 2017 · 243 posts · 108 votes
9y
Dhru Das This is an area that has shifted so the person is likely never going to get their asking price from the market. The details make it so he gets the money he's looking for, but I get a payment that cash flows better. We will see what he thinks.
Rental Property Investor · Arlington Heights, IL · Member since 2017 · 243 posts · 108 votes
9y
@Michael Facchini This is a condo small. 1. bedroom and 1 bathroom that are about 750 sq feet, but rents for $1050 with a current renter in it. Also, the rent is like 1.5% of the latest MLS deals in same condo. But even at the price the person paid for it, is just a bit better than 1%. This is a popular condo association for investors, but the exits are very limited, because the place has over 50% rental, so mortgages are limited.