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Interesting Deal To Structure...what Would You Do?

#1 User is offline   Sam in Hawaii 

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Posted 13 June 2009 - 09:51 PM

I would really appreciate some expert insight on how to structure this new offer on my townhouse....

They buyers really want to buy it. I told them the price of $377k. I owe $376k. It is worth about $250k with all the foreclosures and REO's in the area.

They have kind of poor credit but their business is ROCKING....They bought a Subway franchise.

They can put up to $15k down......

I currently have a pay option ARM. And I am thinking of asking for a modification on it to get them to fix it for a nice low rate.

My monthly payments are around $2500/mo depending on the variable rate at the time.....

Can you offer a few different ideas on how to structure this so they can move in and I can stop stressing over it?

I was thinking of having three different options for them, $5k down, $10k and $15k down. Just need help structuring the monthly and figuring out how it would work on the back end of the transaction once they get a new loan or refi or something.

Is it best to structure this as a lease option or simple owner financing?

They also asked me if they can cash out their loan with me early.

HELP!!!

Thank you all for your eyes on this deal.....
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#2 User is offline   Jonathan RexfordFL 

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Posted 24 June 2009 - 02:30 PM

View PostSam in Hawaii, on Jun 13 2009, 11:51 PM, said:

I would really appreciate some expert insight on how to structure this new offer on my townhouse....

They buyers really want to buy it. I told them the price of $377k. I owe $376k. It is worth about $250k with all the foreclosures and REO's in the area.

They have kind of poor credit but their business is ROCKING....They bought a Subway franchise.

They can put up to $15k down......

I currently have a pay option ARM. And I am thinking of asking for a modification on it to get them to fix it for a nice low rate.

My monthly payments are around $2500/mo depending on the variable rate at the time.....

Can you offer a few different ideas on how to structure this so they can move in and I can stop stressing over it?

I was thinking of having three different options for them, $5k down, $10k and $15k down. Just need help structuring the monthly and figuring out how it would work on the back end of the transaction once they get a new loan or refi or something.

Is it best to structure this as a lease option or simple owner financing?

They also asked me if they can cash out their loan with me early.

HELP!!!

Thank you all for your eyes on this deal.....


Not sure if you are still in this deal. But if its 100K over financed do you think in all reality that you can make this work? If they cash you out can they just pay off the note by not relying on getting financing?

I am not a fan of owner finance with less than 10%. It would depend on how long it would take for you to get them out.

If you can get a modification of rate and balance then go for it. If not have you thought about shorting your own home. I think I would collect 10K let them stay in there for 6 months and then start the short if they can get financing. But I think you see where I am heading with this.
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#3 User is offline   Dealmaker 

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Posted 09 July 2009 - 01:52 PM

HAPPY BIRTHDAY - JR!!

I'm a little late.. hope all is well.

:angrym:
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