Hello
I have a potential purchasers for one of my properties. Since I am not using a realtor and the market in down, I am quite comfortable selling for 5% lower than the appraised value. I want to be able to pass that savings down to the buyer in the form of his down payment. For example let`s say the place appraised for $150,000. I am OK accepting $7,500 less than that since we are not using a realtor. I want to make things as easy as possible for my buyer. I want to give him that $7,500 to use as his bank required cash deposit. It was suggested from a veteran REIN member that I gifted a family member of his the $7,500 who then in turn gifted the $7,500 to the buyer (a gifted down payment must come from a family member). I would also make sure that I got the $7,500 back if the sale didn`t go through. He then gets the mortgage for $150,000 and I get paid back my $7,500 plus the remainder of the profits in the building.
I wanted to make sure this isn`t touching in that area of grey and if there were any other suggested methods to get this deal done so that my buyer is in with zero cash down. I am ultimately covering his cash down payment as the appraisal is totally legit.
Thanks
I have a potential purchasers for one of my properties. Since I am not using a realtor and the market in down, I am quite comfortable selling for 5% lower than the appraised value. I want to be able to pass that savings down to the buyer in the form of his down payment. For example let`s say the place appraised for $150,000. I am OK accepting $7,500 less than that since we are not using a realtor. I want to make things as easy as possible for my buyer. I want to give him that $7,500 to use as his bank required cash deposit. It was suggested from a veteran REIN member that I gifted a family member of his the $7,500 who then in turn gifted the $7,500 to the buyer (a gifted down payment must come from a family member). I would also make sure that I got the $7,500 back if the sale didn`t go through. He then gets the mortgage for $150,000 and I get paid back my $7,500 plus the remainder of the profits in the building.
I wanted to make sure this isn`t touching in that area of grey and if there were any other suggested methods to get this deal done so that my buyer is in with zero cash down. I am ultimately covering his cash down payment as the appraisal is totally legit.
Thanks