- Joined
- Oct 17, 2007
- Messages
- 295
Hello
I several doors to my portfolio but all of my deals have been traditional 20% plus cash down with a joint venture partner. I found VTB`s too difficult to sell in the past. But things have since changed..... Vendors are more motivated
I have found a deal with a motivated vendor. She has already missed one payment and currently living in another city. The price of the house is $249,000 but I think I can get it of $220,000. She owes $120,000. She is open to VTB`s etc. I think she would carry as much as 20% of the financing which (theoretically) could get me in for no cash down. How would you experienced REIN members structure this deal? I can`t show the full amount being carried to the bank as they don`t like 100% financing. The banks don`t want to lend money right now anyways. Would a possibility be putting my own cash down to finance the property. Then, at the same time, draw up a caveat or promissory note where she lends me back the money secured against the property? I understand the theory of VTB`s but have found the banks do not like them especially when it makes it 100% financing. Any other ideas or suggestions??
Thanks
Mark
I several doors to my portfolio but all of my deals have been traditional 20% plus cash down with a joint venture partner. I found VTB`s too difficult to sell in the past. But things have since changed..... Vendors are more motivated
I have found a deal with a motivated vendor. She has already missed one payment and currently living in another city. The price of the house is $249,000 but I think I can get it of $220,000. She owes $120,000. She is open to VTB`s etc. I think she would carry as much as 20% of the financing which (theoretically) could get me in for no cash down. How would you experienced REIN members structure this deal? I can`t show the full amount being carried to the bank as they don`t like 100% financing. The banks don`t want to lend money right now anyways. Would a possibility be putting my own cash down to finance the property. Then, at the same time, draw up a caveat or promissory note where she lends me back the money secured against the property? I understand the theory of VTB`s but have found the banks do not like them especially when it makes it 100% financing. Any other ideas or suggestions??
Thanks
Mark