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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Try this exit plan... Posted by Rick, the Probate Guy on June 17, 2009 at 7:04 AM In Reply to: Buyer can't get loan due to HOA delinquency rate posted by Skimmer on June 12, 2009 at 4:43 PM Use the Bank of Skimmer. I don't know what you're margins are, however consider using seller terms, aka seller paper. Here's just one of an endless number of ways to structure this and accomplish your profit objective(s): On $100K condo (you don't offer any values, hence my example): $ 50,000 1st TD @ 8%, 30 due in 10 ($366.88/mo. P&I) 10,000 2nd TD @ 9.99% I/O, 5 years ($83.25/mo. Int only) 40,000 down payment $100,000 total purchase price After close of escrow, sell the first if you need to raise capital, or borrow against the total principal or some combination of future payments. The benefit to you of structuring this way is that you'll have a 50% LTV first that you can resell all day long without taking any/much of a discount, depending on the TD buyer. Note buyers like purchasing low LTV paper. Hold the little 2nd in your own portfolio or use it as a money stretcher in acquiring some other deal, or even horse-trade it with some other investor. It's still a very marketable note, and also suitable for a smaller or novice note buyer. You might even sell it for par value. Fiddle with the numbers as you may, but the key thing is to stop relying on mortgage bankers and brokers to make your exit strategy work. That's an old habit, like smoking, that you'd do well to quit. Follow Ups: Re: Try this exit plan... Skimmer 8:50 AM, 06/17/09 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Use the Bank of Skimmer. I don't know what you're margins are, however consider using seller terms, aka seller paper. Here's just one of an endless number of ways to structure this and accomplish your profit objective(s): : On $100K condo (you don't offer any values, hence my example): : $ 50,000 1st TD @ 8%, 30 due in 10 ($366.88/mo. P&I) : 10,000 2nd TD @ 9.99% I/O, 5 years ($83.25/mo. Int only) : 40,000 down payment : $100,000 total purchase price : After close of escrow, sell the first if you need to raise capital, or borrow against the total principal or some combination of future payments. : The benefit to you of structuring this way is that you'll have a 50% LTV first that you can resell all day long without taking any/much of a discount, depending on the TD buyer. Note buyers like purchasing low LTV paper. : Hold the little 2nd in your own portfolio or use it as a money stretcher in acquiring some other deal, or even horse-trade it with some other investor. It's still a very marketable note, and also suitable for a smaller or novice note buyer. You might even sell it for par value. : Fiddle with the numbers as you may, but the key thing is to stop relying on mortgage bankers and brokers to make your exit strategy work. That's an old habit, like smoking, that you'd do well to quit. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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