 Owner carry refi scenario (by NE [PA]) Jul 8, 2024 3:21 PM
 Owner carry refi scenario (by GKARL [PA]) Jul 8, 2024 3:44 PM
Owner carry refi scenario (by Sisco [MO]) Jul 8, 2024 4:00 PM
Owner carry refi scenario (by NE [PA]) Jul 8, 2024 4:23 PM
Owner carry refi scenario (by Sisco [MO]) Jul 8, 2024 4:30 PM
Owner carry refi scenario (by Ray-N-Pa [PA]) Jul 8, 2024 5:09 PM
Owner carry refi scenario (by 6x6 [TN]) Jul 8, 2024 5:25 PM
Owner carry refi scenario (by ken [NY]) Jul 8, 2024 5:56 PM
Owner carry refi scenario (by Richard [MI]) Jul 8, 2024 5:59 PM
Owner carry refi scenario (by MikeA [TX]) Jul 9, 2024 8:48 AM
Owner carry refi scenario (by Robert,OntarioCanada [ON]) Jul 9, 2024 3:33 PM
Owner carry refi scenario (by NE [PA]) Posted on: Jul 8, 2024 3:21 PM
Message:
I am two years into a five-year balloon on a single-family house. Seller owner carried the mortgage. Amortized for 20 years. The seller got an offer from a bank to buy the mortgage at $10,000 less than what I owe. I owe about 39,000 on the house. He’s thinking of taking the mortgage buyout for 29,000, because he needs some cash. Losing $10,000. He said he would like 10,000 cash, but, he really needs $7500. I’m thinking of coming up with a couple different scenarios, because he was OK with me buying the mortgage from him and either modifying the loan that we have and giving him some cash or just refinancing with my own bank. This is the first mortgage he has ever held for anyone, and I don’t anticipate him doing this again, because he only has one house And I know him. How would you work this up to give him a couple different options in order to turn this into a win-win? I’m thinking if I work this right, I can give him what he wants, extend the mortgage and possibly drop down the payments at the same time.
--174.240.xxx.xxx |
Owner carry refi scenario (by GKARL [PA]) Posted on: Jul 8, 2024 3:44 PM
Message:
I'd keep this real simple and just refinance and take him out at $ 10,000 less than face since he's already willing to do that. Other alternative if you have cash is to just pay him off less the 10K.
Another alternative is to give him 7500 to 10,000 now and negotiate a haircut on the balance or different terms (i.e. another 5 years before the note balloons and etc). --209.122.xx.xxx |
Owner carry refi scenario (by Sisco [MO]) Posted on: Jul 8, 2024 4:00 PM
Message:
What is the face interest rate? --149.76.xxx.x |
Owner carry refi scenario (by NE [PA]) Posted on: Jul 8, 2024 4:23 PM
Message:
Private loan is 6.5%. New bank loan would be 8%. --24.152.xxx.xx |
Owner carry refi scenario (by Sisco [MO]) Posted on: Jul 8, 2024 4:30 PM
Message:
How about this, I assumed that you were paying 8% face rate on the note….
Offer to prepay 23 months payments (7500) payments 25-48 In exchange, note holder will forgive payments 49-60 , and will extend balloon for another 5 years. --149.76.xxx.x |
Owner carry refi scenario (by Ray-N-Pa [PA]) Posted on: Jul 8, 2024 5:09 PM
Message:
You hit a home run.
Since you have a 1.5% spread, the $10,000 discount on note is greater than the loss of future value of the note in three years.
If you don't have cash to pay this off, you talk with the folks you know who do private lending. If you don't know anyone today, go to your investment group and ask who pays cash for real estate - these are your folks who have cash to lend you --24.101.xxx.xxx |
Owner carry refi scenario (by 6x6 [TN]) Posted on: Jul 8, 2024 5:25 PM
Message:
I know my lack of knowledge on this doesn't really count, but I was thinking give him 31K and just pay him off. He gets 2K more then he would get from the bank, and you get to save 8K plus the interest. Both could be happy, and the place is paid for. --76.129.xxx.xx |
Owner carry refi scenario (by ken [NY]) Posted on: Jul 8, 2024 5:56 PM
Message:
I would offer him the $7500 he needs for enough payments to get $10000 or whatever you can get and most importantly to me a 5 year extension on the balloon or i would even pay him $7500 now in advance for a reduction of $7500 on the back end if he would get rid of the balloon altogether.I hate balloons and am kind of scared of them, you never know where you will be in 3 years or if the banks will allow anyone to refi like 2008.Take him to lunch so you have a captive audience and time to explore what will work for both of you --74.77.xx.xx |
Owner carry refi scenario (by Richard [MI]) Posted on: Jul 8, 2024 5:59 PM
Message:
Did you put a first right of refusal in the terms of the note? If you did, you can match the banks offer. --172.58.xxx.xx |
Owner carry refi scenario (by MikeA [TX]) Posted on: Jul 9, 2024 8:48 AM
Message:
Don't lose that deal over details. Go get financing if you need to and move quickly. The cost difference of $10,000 in 3 years with a spread of 1.5% is only $437. If you lose out on this deal it will cost you over $9,500. --209.205.xxx.xx |
Owner carry refi scenario (by Robert,OntarioCanada [ON]) Posted on: Jul 9, 2024 3:33 PM
Message:
Ask the owner if can pay mortgage weekly where interest and principal wil take less time to pay off. Banks do not like weekly payments as less interest is collected. --216.110.xxx.xxx |
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