OfflineI have a very motivated seller that needs to get rid of a duplex that he owns right now. He is willing to take a lower purchase price with a higher interest rate across 2 years with 0 DOWN!!
Problem is he is moving out of state and he is thinking that b/c he still has this mortgage in his name that he will not be able to get approved by another lender to buy another house...
Just was wondering if anyone has came across this problem and if there is anything creative that I can do to solve this problem.
I know my last option would be to assign the property for him but would rather buy it with 0 down for the positive income each month!!
Any help is greatly appreciated!!
Shaun
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He should be able to qualify for another mortgage, if he has good credit, by showing the lender the contract he has with you. May need a history of payments to him by you (two to six months).
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
Hi Shaun,
Ok, how many propties does the owner own? and are they residential or commercial?? In residenitial , my understanding is he can own 4 including his personal residence. (Loans in his name). If he is married his wife can own 4. Please DGers correct me if I am wrong. He will probably be able to qualify just fine.
Alot of people out there do not understand that you can own more than one property at a time. Another idea would be for you to speak to a mortgage broker about this so that you have a better understanding of the lending regulations.
What are the numbers on the duplex? I think you need to tie it up right now!! Write in your escape clauses and back out if you have to. Just do it!
"Don't tell me I can't, Tell me how I can."
Thanks for the advice!! I will let him know!!
Numbers on the duplex will have a positive cashflow of about $250 during the 2 year owner financing b/c of the 0 down and higher interest rate. When I finance in 2 years it should cashflow around $400 $500 per month!
Be careful, interest rates are expected to go up considerably.
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
Good point of advice but lets just hope rental rates go up along with the interest rates!! Which they should!!
he shouldn't have any problem getting another mortgage. From the last that i knew is that he could have 4 as long as he is financially able to support it. Let me know how it goes....
Destrie
Destrie
Failure Is Not An Option