Buyer has 40k to put down
I have a house under contract for $115k. There is an existing mortgage on the property for $80k. I listed the property for $119k and I got an email from a buyer asking if we can carry if they put $40k down. Obviously at this point I don't know if the buyer is for real but I think I'll just play it like they are.
Previously, the seller said he needed his money out of the deal, which is $30k I believe. My question is, if the buyer is for real and has $40K how can I put this together? I'm sure you guys will need more info so just ask, I gotta take off right now.
Jeff
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
What are you thinking you will sell it for? Could you structure it as a sub 2 where you keep the seller's current loan in place? You can certainly create a second, from your buyer to you with the house as security. You can make that for any amount you wish. Since you're in second position, you have little leverage if the buyer stops paying. But, if you could pocket $5-10K on the deal, and have the potential for a payment stream, it might be worth the risk. With $40K into the deal, the buyer has a lot to lose.