VTB Contract Sample

[SPeever]

Hello everyone: I was wondering if anyone has a sample VTB contract? I would like to learn as much as I can.
Thank you!

 

[Thomas Beyer]

You don’t need a VTB contract. You need a simple sentence in a normal offer, such as

Seller will grant a mortgage in second position for _________ at ___ interest, payable monthly (or annually or accrued) until ______ or earlier in the buyer’s discretion.

Lawyer will do the test once seller accepts it - which of course is the tricky part !!


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[SPeever]

Thank you very much - realizing that this may be a possible option for second properties or land, etc. where the seller can realize tax advantages, but I understand that the terms are the key and will work in only certain situations, especially now. Interest only payments and short term?

 

[Thomas Beyer]

Thank you very much - realizing that this may be a possible option for second properties or land, etc. where the seller can realize tax advantages, but I understand that the terms are the key and will work in only certain situations, especially now. Interest only payments and short term?

VTB terms can be as flexible as seller allows but always have to be seen in light of the asset class, purchase price, length, cash down, first mortgage and overall market sentiment. They are quite common in raw to be developed land sales as first mortgages are usually far lower but not that common in east to finance string commercial or apartment building unless to lineup to assume underlying first mortgage maturity.


Thomas Beyer, Asset Manager & Improver, Hard Asset Investor & DeFi Asset Hodler, Author, Father, Mentor, Hiker, Kayaker www.prestprop.com

 

[SPeever]

Thank you again so much for the reply and great information - I really appreciate it.