OfflineOkay- so recently I have found a property that I am interested in. The asking price is 290K and I offered 260K. I found out that there are a few offers and one offer that I know off was 250K which was rejected by the seller so the potential buyer will be raising it soon. I also found out that the reason why the seller is putting the property on the market is because he owns two houses and recently lost a job so he decides to sell this house(non-primary residence) to pay off the mortgage on the other house.
Knowing this, I came up with an idea which I would like to run it through the DG family and will welcome all feedback and advices. My idea is to offer the seller the full amount, 290K, by paying his monthly mortgage off for his primary home. If the mortgage of his home is less than this amount than I will make monthly payments to him or pay him the difference immediately after his mortgage is paid off. In turn, I won't have to put a down payment or pay interests by taking out a loan and will definitely save in the long run.
Also, fyi, the rent roll on the property that is for sale will cover all the expenses of that property so basically my only expense will be paying off the seller's mortgage payments.
Is this doable? I know I will need to consult a lawyer if the seller agrees to do this but am I missing or overlooking something here? Any help will be greatly appreciated. I will need to present another offer soon (within a day or two) if I am outbid.
Thank you all for your time and advices.
This sounds like you either want to do a lease/option or a "subject to". Could you clarify this? Both of those would work if the owner is open to this.
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It would not be a lease option as my intention is not to rent the place until I can pay it off. I am not sure whether it is a "subject to" but I think it won't be this either.
In a nutshell, my intention is to purchase the property that the owner has on sale by paying the full asking price amount through installments on his other property which he owes mortgage in.
Just wondering if this can be done?
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What are some of the vitals for this property? Any comps within the last couple months for it? How is the market for that area? Do you have a AVR worked out?
The reason I ask is when a property hits the market by the owner initially, often the price is way beyond reality, at least the reality of REI's. With the market and economy this gives us the ability to get properties at once in a lifetime prices, so unless $290k is already a VERY good price compared to other prices of similar homes on the market right now, $30k off might not be enough compared to the types of deals that are attainable when you play the volume of the market.
Post some info on this property so we can help you strategize on it.