I have a tenant that intrested to buy the unit that they occupies,she is putting 175K and the balance is 100K.

How can I structure the deal and what should I charge here for the balance in P+I for 1 Yr,
Thanks
In Selling Property - Asked by Ahmed S. - Jan 13, 2010
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Answer(s)

Nelson C.
Corporate Investor
Glen Cove, NY

Can't give you a blanket answer, it depends on the persons credit worthyness, is this residential or commercial, will the 100K installment loan be a first or second position? The buyer claims to have the ability to cancel the loan in 12 months, that's a big payment if it includes the P. If you want to cash out completely, I may be interested giving your buyer a mortgage or just buying the note from you.
Sounds good topically, good luck with it. Nelson C.

Jan 13, 2010
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Ahmed S.
Broker/Agent
Antioch, CA

Hi Nelson please send me your info.
Thanks,Ed

Jan 20, 2010
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Chris S.
Broker/Agent
Coeur D'alene, ID

If $275k is the value of the unit and you don't owe anything to get clear title, then I'd do what it takes to finance this tenant. If she has $175k down, your worst case scenario is she defaults and you keep $175k and get the unit back after foreclosure and eviction.
Regardless, you need a good contract in place. If you put a solid contract in place, you can probably sell that note pretty easily on the market for only a nominal discount (time value of money calc) and get your money right away.

Jan 22, 2010
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Gregory G.
Broker/Agent
San Francisco, CA

What's the property worth?
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)225-9894
gregory.garver@gmail.com

Mar 5, 2010
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