I am in the verge of potentially setting up my forst buy and hold deal with am old time invester in my area. I am going to be looking to set up owner financing with hopefully little money down. I just have a few questions before starting to really push the matter. Who wold I need to right up all the information, does a lawyer do this, broker, bank? Also the current owner is well into his 80s if I end up getting a 30 year mortgage what happens when the person doing the fiancing passes on? Who would I be paying?
Installment sale, give him 105% of value, get the payment half of market rent, rent it out or give him market rent until he dies but no payments, just subtracted fro note as valuable consideration.
The key to older people selling installment sales is:
If you got all your cash today, what would you do with it?
Have you considered a Private Mortgage as an asset?
Pass this asset on to your kids? A Charity? For like 20 years.
Compare this with
1. an Annuity
2. Reverse Mortgage
Caveat: check with heirs of will for their ok, check with elder care attorney, possible competency issues.
1st off, an old investor will probably clean your clock, no he won't do a 30 year loan, he's not in his right mind if he agrees. Secondly, go look again, it's probably over priced.
how do you turn this bold and italics off????? Sorry!
My mouth is still open, jaw on the floor from looking at the videos on Brian's link, the note queen and that Ron guy. That Ron guy, what total and utter BS, now I really see why Dodd-Frank was passed, it was wrong 10 years ago!
No wonder newbies are messed up, everyone and his dog are in the guru business!
I admit, sometimes it seems there is no light at the end of the tunnel trying to teach RE and financing in public forums. The internet is full of junk and new gurus seem to pop up daily, then there is always a wave of newbies that aren't willing to learn the realities of the business and concentrate on fantasies. Well......I'm not giving up today!
An old investor? Why is he selling......really why?
Get him to agree to sell at the appraised value, better yet, have him get one and you get one and agree to average the two! He probably knows appraisers! You probably don't!
My dad is 87, some scammer called him saying he won money and a new Mercedes, he is sharp enough that his immediate reply was "oh, no, thank you, but I don't need it, just give it to someone else!" The guy was at a loss for words! Just because someone is up in years doesn't mean they are naive or dumb, you better sharpen your pencil!
Ask him if he will carry the deal, point blank, he knows what seller financing is if he's an old investor, don't try to suggest what he can do, he already knows, tell him what you can do. Otherwise, you're wasting his time and yours.
Think of it this way, if I owned the place and you wanted to buy it with little down and seller financing, what would you say to me? He's not me, but if you can impress me, you'd probably impress him. It's not impossible! :)
thanks for the advice everyone. As a side note there is no way I am trying to get one up on the landlord if thats the way t seems I apologize. I really just need some concert advice on how I should structure a deal with him. What would be my best option?
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