Buying a 100% owner financed investment property

[bothof]

What is the name of your state? SC

Q: There is a piece of property that is owned outright by a lady that only wants about 10% of the total property value in cash for herself and her move into a new home. The rest of the money she wants to invest for herself and her heirs.

I'm trying to structure this deal so that I can finance the 1st with a bank and let her take back a second with 7-8% payments.

I'm planning on renting this property to pay for the mortgage and it is in a college district and will not have any problems renting as she has seen over the years that she has maintained the property.

I want to be fair to this lady so that she can be comfortable with her investment of her money..but at the same time I want to have a limit..say 5 years in which I could pay her off in full.

Is there an easy and ethical way to complete this transaction where everyone will be happy...ie; I'll get the house with 0% of my own money and my pre-payment penalty would be only 5 years, but at the same time the seller will have the peice of mind that if I don't perform she is still in a good position?

A: Talk to an attorney.

Any others?

 

[seniorjudge]

Is there an easy and ethical way to complete this transaction where everyone will be happy...ie; I'll get the house with 0% of my own money and my pre-payment penalty would be only 5 years, but at the same time the seller will have the peice of mind that if I don't perform she is still in a good position?

A: Talk to an attorney.



You are absolutely and 100% correct and this is the best answer you will get.

 

[HomeGuru]

I absolutely agree 100%.

 

[bothof]

any takers?

 

[HomeGuru]

any takers?

**A: yes, I bet 100% to 1% that SJ gave you the correct response.

 

[bothof]

Ok...If I don't have a repore with a local real estate attorney...is there a free service or any suggestions on who I should I call...Thanks fellas

 

[seniorjudge]

Ok...If I don't have a repore with a local real estate attorney...is there a free service or any suggestions on who I should I call...Thanks fellas

What's a repore?

Anyway, the advice still stands: get a lawyer.

 

[HomeGuru]

Ok...If I don't have a repore with a local real estate attorney...is there a free service or any suggestions on who I should I call...Thanks fellas

**A: Ok, let me fill you in on a little secret. Local real estate attorneys can easliy become your friend. Just show them some cash.
And what you are asking is not real estate investment 101. You are dealing with a complicated purchase technique. So discuss an installment contract or seller purchase money mortgage, lender first and seller second etc.

 

[bothof]

Thanks Guru...you have helped me.

 

[HomeGuru]

Thanks Guru...you have helped me.

**A: no problem.