- Joined
- Oct 17, 2007
- Messages
- 295
Hello
Does anyone have any information in regards to how an agreement of sale works, the advantages (to the buyer), and the disadvantages (to the buyer). I am working on a commercial purchase where the seller absolutely can`t get out of his first mortgage. He is suggesting I give him xxxx in cash, pay his debt service on the 1st that he can`t get out of and he will carry the rest in a VTB. His term on the 1st mortgage ends in 3 years. This will all be set up through an agreement of sale.
The numbers all work on a cash flow and Cap Rate basis so that is not where my concern is.
Anyone have dealings with this type of contract? Any thoughts, or suggestions?
Thanks
Mark
Does anyone have any information in regards to how an agreement of sale works, the advantages (to the buyer), and the disadvantages (to the buyer). I am working on a commercial purchase where the seller absolutely can`t get out of his first mortgage. He is suggesting I give him xxxx in cash, pay his debt service on the 1st that he can`t get out of and he will carry the rest in a VTB. His term on the 1st mortgage ends in 3 years. This will all be set up through an agreement of sale.
The numbers all work on a cash flow and Cap Rate basis so that is not where my concern is.
Anyone have dealings with this type of contract? Any thoughts, or suggestions?
Thanks
Mark