NEWBIE HERE!

[kdhastedt]

Realnew,

What I was referring to was that Ranierblue said his lender would only lend 75-80%.  Perhaps the seller would take a 2nd mortgage for the balance of the loan.  

This will often work because the seller may own the property outright or may not want to be hit with the entire capital gains burden in one year.   In essence, the lender gives 80% of the mortgage amount and the seller lends the buyer the other 20%.

Bottomline -- YOU NEVER KNOW UNTIL YOU ASK!

Keith

[realnew]

So, Keith -

In getting the seller to take the 2nd, is that when you propose montly  payments to him/her for a specified period of time?

And that would be - interest-only payments, monthly for X period of time, with principal due in (5) X years?

---

if yes: then you would go to settlement, take ownership, then when you close your next deal, pay the former owner in full?  

OR

option 2, use the cash flow  from the property to pay him/her?

[kdhastedt]

In getting the seller to take the 2nd, is that when you propose montly  payments to him/her for a specified period of time?

Yes.  You might also have to explain the tax benefits of only paying the Capital Gains as they are received and having a monthly income stream.

And that would be - interest-only payments, monthly for X period of time, with principal due in (5) X years?

It could be.  I could also be $X amortized over 20 or 30 years but a balloon in 5 years, etc.  There are any number of variations.

if yes: then you would go to settlement, take ownership, then when you close your next deal, pay the former owner in full?

If the seller is open to that, it's a possibility.  If they are trying to reduce capital gains or are trying to generate an income stream, they may like the monthly payments.


Keith