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r0n161616

3 units in the city of LA for sale by owner

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Hi all....

 

I am selling a three unit building i own in the city of Los Angeles.

 

I would like to sell it myself (i have a re license) but I would like to offer favorable terms instead of the buyer needing conventional bank financing.

 

WMC mortgage has the 1st of $280,000 at 7.99% (payment on 1st is $2052 per month), the seller carried $80,000 at 8% (payment on 2nd is $533.33 per month)

 

There are 2 one bedroom units which rent for $800 per month each and 1 two bedroom unit which rents for $1100 per month.

 

The property has been taken down to the studs and is all new. New tile, carpet, drywall, textured paint, insulations, electrical, plumbing, septic, windows, doors, exterior stucco and paint, facia board, etc etc etc. ITS NEW lets just leave it at that.

 

MY QUESTION IS: How do I provide the financing for the new buyer if I have all these other loans in place that I am obligated to pay? Can I sell the property to someone new without reporting it to my lender and the original seller carrying the second? I can receive the new payments from the new owner and pay off the 1st and 2nd and maybe keep the difference if there is any every month. At least that would be the plan.

 

Please help me do my first sale with seller financing. THANKS A TON!

 

PETE

pete4hreg@yahoo.com

 

I am asking $550,000 or best offer.

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MY QUESTION IS: How do I provide the financing for the new buyer if I have all these other loans in place that I am obligated to pay? Can I sell the property to someone new without reporting it to my lender and the original seller carrying the second? I can receive the new payments from the new owner and pay off the 1st and 2nd and maybe keep the difference if there is any every month. At least that would be the plan.
Pete, the short answer is yes, you can offer seller financing and keep the existing mortgages in place by structuring a wrap around mortgage. It's hard to explain here in 25 words or less, but if you go to a local REIC, I assure you there will be members attending who can advise you on this.

Be advised, though, that a wrap, if found out, will likely trigger the DOS clause of the underlying mortgage(s).

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