- Joined
- Sep 26, 2007
- Messages
- 33
Hello,
I`ve got my first Agreement for Sale under way. I`ve been negotiating over the phone and I`ve built up a really good rapport with the seller but I`m having difficulty putting together an offer.
Here is the deal.
Joe has a condo in Toronto that he is selling FSBO for 320,000. He needs 20K at close but is willing to keep the mortgage in his name and delay getting the rest of his equity about 80K until my tenant buyer buys me out in one to three years.
Since I`m going to be borrowing his 80K do I pay him interest for that? I`ve got the form from myREINspace called `Real Estate Purchase Contract Agreement for Sale Financing Schedule (Buyer)`. Would I put this 80k down as the principal amount? How can I put a term down when I don`t know when my TB is going to cash me out? What do you commonly offer as an interest rate? Would I pay the interest at the end of the term or in installments.
Another question, I`ll be paying the mortgage down for one to three years, who benefits from the principal pay down? I am agreeing to pay any payout penalty.
r: #000000; background-color: transparent; font-weight: normal; font-style: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">What if my TB can`t qualify in three years and the seller`s mortgage comes due?
I am going to lease to own this for 370K at $1600/month. I`ve got a lot more questions about rent to own but I`ll save that for another post.
Thanks,
Rob
rfkennedy@gmail.com
416-538-3904
webuygtahomes.com
I`ve got my first Agreement for Sale under way. I`ve been negotiating over the phone and I`ve built up a really good rapport with the seller but I`m having difficulty putting together an offer.
Here is the deal.
Joe has a condo in Toronto that he is selling FSBO for 320,000. He needs 20K at close but is willing to keep the mortgage in his name and delay getting the rest of his equity about 80K until my tenant buyer buys me out in one to three years.
Since I`m going to be borrowing his 80K do I pay him interest for that? I`ve got the form from myREINspace called `Real Estate Purchase Contract Agreement for Sale Financing Schedule (Buyer)`. Would I put this 80k down as the principal amount? How can I put a term down when I don`t know when my TB is going to cash me out? What do you commonly offer as an interest rate? Would I pay the interest at the end of the term or in installments.
Another question, I`ll be paying the mortgage down for one to three years, who benefits from the principal pay down? I am agreeing to pay any payout penalty.
r: #000000; background-color: transparent; font-weight: normal; font-style: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">What if my TB can`t qualify in three years and the seller`s mortgage comes due?
I am going to lease to own this for 370K at $1600/month. I`ve got a lot more questions about rent to own but I`ll save that for another post.
Thanks,
Rob
rfkennedy@gmail.com
416-538-3904
webuygtahomes.com