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Jason (AL)

Andrew Ikeda

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Ok.

Say I have a seller who has a loan balance of $33,000. The house is worth $50,000.

We agree upon a sub2 deal (I take over his payments).

I offer $4,500 cash along with me taking over his payments.

So, I'm into the deal for $37,500k. (75%)

I don't want to fork out the $4,500 from my own pocket, so I'll use OPM (the bank's) :wub:

 

Which financing "strategy" would take less time, be cheaper (fees & terms-wise), and be overall the best way to go:

 

1. I take title to the house sub2 and I refinance for $37,500, or have them to refinance, and then I take sub2. Basically the same thing. I'd rather have them to refiance, then me take over sub2 though. :unsure:

 

-OR-

 

2. I just go to the bank or my mortgage broker for the $37,500.

*I know this would depend on the particular lender I'd use.

 

 

Is one or the other faster, cheaper, and/or better than the alternative?

 

Am I making sense?

 

Jason

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Hi Jason,

 

 

It appears that #1 is the better choice. Have them refinance the property and then proceed with the sub2. As far as the $4500 option, yes, try to use the banks money...maybe you could get a personal line of credit for say 90 days or something like that....depends on your credit score,etc. The best is to get it from a t/b as you already mentioned.

 

Hope this helps.

 

Andrew

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