I have a client who wants to pay off some loans and leaseback his home for 10 years with an option for additional years. There is a possibility an investor can purchase this home with a note and no cash out of pocket. The existing home owner will service the note. The list price on this home would be $1,925,000. If an investor put a $1,500,000 note on the home with no money out of pocket, there would be approximately $400,000 instant equity and the note would be serviced by the leaseback.
Any other creative financing ideas?
About the home: Located on the Central California Coast 35 miles to San Jose International Airport & Silicon Valley – 3 Blocks to the Beach
This lovely home was purchased by the owners as a new build in 1991 and is located on a beautiful and quiet cul-de-sac within walking distance of Capitola Beach and the Pacific Ocean.
The owners love the property and raised a family in the home and desire to stay in the home, but have use of their capital. They would like to lease the home back for 10 years with 2+ year renewable options. They are willing to offer a significant discount off the current market value of the home and are willing to provide significant and immediate equity in return for a long term lease. They are flexible and willing to negotiate the discount and lease terms.
This is a large beautiful 3 bedrooms, 2.5 bath well-maintained home built in 1990. The kitchen has been upgraded to include a Sub-Zero refrigerator and a Viking cooktop. The master suite includes a marble tiled bathroom and shower. The property has an installed security system, an automatic sprinkler system, paved patios, and a new hot water tank and software water system. There are (3) working fireplaces in the home.
Great location, stroll to the beach & Capitola Village shops and restaurants. Sought after location in Upper Village behind Gayle’s bakery. Quiet neighborhood cul-de-sac not impacted by tourists and special events of the lower village.
Did your home owners find an investor?
I’m wondering what they propose for a leaseback? I would be interested in a NNN longterm lease if it covers the interest on the note, and the seller agrees to pay for inspections and closing costs.
Let’s talk about it.
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