Dont understand terms of offer from investor

[beckisdavenport]

What is the name of your state? North Carolina

My son has been diagnosed with Brain and Spine Cancer and we need to sell our house FAST and relocate! Appraisal on my house is $199,900.00, and I am asking only $140,000.00, with hopes I can sell FAST!I have contacted a few of those "we buy houses fast" people and we received the following offer from this one particular investor. I understand everything except the last part! Could you please explain to me what they are talking about when they say: "The remainder ($5000-$10,000) we would ask you to carry back in a note and Deed of Trust secured by the house."

I don't understand what they mean nor do I understand why this would be necessary or to what benefit would it provide and to whom?

The following is their offer.

Without having seen the house in person, but based on the numbers you have given me, here is what we will be able to do:

Sales price of $145,000 to $150,000. We will pay off your existing mortgages (approx $70,000) and get $70,000 in cash to you at closing. The remainder ($5000-$10,000) we would ask you to carry back in a note and Deed of Trust secured by the house. When we eventually get the house sold (anywhere from a few months to a couple of years, since we work with buyers who sometimes need some time to get qualified to buy the house), you would be paid the face value of the note.

Doing it this way allows us to get the best price for you for the house and get you as much cash as possible immediately, while still leaving room for us to make a profit. It also allows us to set the closing on whatever day you choose. All of the numbers above are obviously going to change a little one way or the other after we see the property and confirm the work that the real estate agent has done. Also, all of these numbers are bottom line numbers, since we always pick up all of the closing costs when we buy a house.

If you can explain this to me please email me at [email]becki@mchsi.com[/email]

[HomeGuru]

Originally Posted by beckisdavenport

What is the name of your state? North Carolina

My son has been diagnosed with Brain and Spine Cancer and we need to sell our house FAST and relocate! Appraisal on my house is $199,900.00, and I am asking only $140,000.00, with hopes I can sell FAST!I have contacted a few of those "we buy houses fast" people and we received the following offer from this one particular investor. I understand everything except the last part! Could you please explain to me what they are talking about when they say: "The remainder ($5000-$10,000) we would ask you to carry back in a note and Deed of Trust secured by the house."

I don't understand what they mean nor do I understand why this would be necessary or to what benefit would it provide and to whom?

The following is their offer.

Without having seen the house in person, but based on the numbers you have given me, here is what we will be able to do:

Sales price of $145,000 to $150,000. We will pay off your existing mortgages (approx $70,000) and get $70,000 in cash to you at closing. The remainder ($5000-$10,000) we would ask you to carry back in a note and Deed of Trust secured by the house. When we eventually get the house sold (anywhere from a few months to a couple of years, since we work with buyers who sometimes need some time to get qualified to buy the house), you would be paid the face value of the note.

Doing it this way allows us to get the best price for you for the house and get you as much cash as possible immediately, while still leaving room for us to make a profit. It also allows us to set the closing on whatever day you choose. All of the numbers above are obviously going to change a little one way or the other after we see the property and confirm the work that the real estate agent has done. Also, all of these numbers are bottom line numbers, since we always pick up all of the closing costs when we buy a house.

If you can explain this to me please email me at [email]becki@mchsi.com[/email]

**A: list with a Realtor and hire an attorney.

[beckisdavenport]

North Carolina.

I "do not" want to be tied up in a contract, I want to just sell my house Cheap & Fast!

I am not asking for your opinion on what I should do, I am asking your opinion on what they mean when they mention the specific part of the offer refering to:"The remainder ($5000-$10,000) we would ask you to carry back in a note and Deed of Trust secured by the house."

Thank you in advance for any advice on what this investor means!

Becki

[Gadfly]

It pretty much means what it says. You get some money at closing and the rest when they flip the house. Problem is at this point you don't know how much becuase there is no real set price and depending on what they actually sell the house for you could end up with only what you get at first closing.

The national RE market is HOT. List it with a realtor.