interest rates to help you! Owner financing real estate?

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The owner is willing to 100% to $ 200,000 Immobilienfinanzierung.Wenn he refinanced at 6% (ideally) its payment obligations would be approximately $ 1,200 month.Now can say is that he invites me up 6 % on the loan (interest in it) means I owe him $ 2400 monthly? (1,200 and 1,200 in the interest of his mortgage payment)? 6% would be a fair price for her? or modifies the rate usually less in this type of transaction (eg less than 6%) any help would be appreciated.I want to know the details before I wide of such an agreement, and / or contact a lawyer specializing in real estate to draw some for us all.

1 Comment
  1. Reply
    good guy
    May 3, 2011 at 11:48 pm

    be very very cautious!!
    what this sounds like is a “wrap around” “loan”. If the “owner” gets a refi loan , that loan is secured by the property. Should he sell said property to you, he would have to pay the loan off. If he does not, then in effect, he is collecting from you and paying his loan with that money. (wrap around)… What if he collects from you and does not pay his loan? You would be in big big trouble. I would RUN–not walk–to a real estate attorney, who may very well tell you this is not legal. Whatever the terms are, it sounds very very risky for you as you describe it here. Sounds like the owner may be trying to pull a fast one. Oh, and a legit owner financing usually carries a higher-than-normal rate, but you save in junk fees and lower (usually) qualifying criteria. And a legit owner-carry will not prohibit the buyer from getting a better loan from somewhere else in the future. Good luck.

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