Updated over 10 years ago on . Most recent reply
Deal Advice
Hey Everyone!
My Partner and I came across a deal where we would be the bank. The way the deal is structured is like so we would purchase the property for $39,000 that already has a tenant in it that wants to purchase the property but has problems with getting a conventional loan. We would then turn around and sell him the property through seller financing for $50,000. We would set him up a balloon mortgage payment for a 5 year term. He would then make down payment of $1,000 to us and pay a annual interest rate of 9.990 on now $49,000. His monthly payments will be $526.26. Our monthly cash flow would be $31,575.41 and $39,839.15 would be made on the back-end after the balloon mortgage payment term is up so our total profit would be $72,414.56. Our question is deal or no deal and would it be good for our first deal?