Advice Requested: Reasonable offer to buy out our own note?
Hello,
A seller provided owner-financing for a portion of a recent purchase of 3 duplexes about 6 weeks ago. The seller recently mentioned that they were looking into selling the note rather than waiting for the balloon payment in 13 months. This has piqued our interest in finding out what a reasonable offer would be especially if this could be discounted. Our thought is that our likelihood of getting a discount from the seller is sooner rather than later from reading entries in the notes forums.
Our note is for $140,000 @ 4.15% interest, interest only payments of $484.17, payments for 14 months with balloon pmt at month 14. We made the first payment in early May, 2017. Our original plans were to rehab the 3 unoccupied units and rent them out. This has been completed for 2 units and we are starting on the third this week. We plan to refinance with our commercial banker as soon as the units had been rented for long enough to make the committee at the credit union comfortable (our current quoted rate for a 5 year lock is 4%).
We appreciate any advice or suggestions on whether this is worth pursuing.
Thank you in advance for your time!
Amy