Posted by Reco Chavis on September 03, 2002 at 19:32:15:
I had an attorney to drop a possible table closing in my lap from her motivated property sellers. I need to know if this is a "doable" this note
tranaction. Details provided:
Owners: Two owners
Property: Chapel Hill, NC Orange County
Property Value: $95,000 can provide comps
Residential- rented (very close to UNC-Chapel Hill).
Bank loan: $70,000
Interest: 6.25%
Original Length: 180 months
Payment: 600.20
First date of payment: 04/01/01
Payments made: 15 months -on time.
Willing to pay higher interest for the cost of doing business.
The motivation/situations: Owners of property have an investor to pay off their bank loan on property and then resell [owner financing] back to the two owners. The owners want to put the property into a LLC, so they can invest into more properties and not have this show up as personal loan on their credit. [Since it would be in the LLC, but they would be paying the investor on the note from the rental income which is very good.]
Question: How much of a note needs to be created at closing to pay the investor to pay off the loan? Desire to close in two weeks.
I can provide any necessary information, but I need your expertise. Please,call or e-mail me for with any positive/ negative options.
Some have said this is not a "squeaky" clean transaction; however, I have the correct motivation of note creators for creating such a deal and two
willing/agreeing parties and an attorney that has all the documention. What do you think or what are other options? My desire is to do all transactions
decently [legally] and in order.... Any feedback welcome.Thank you.
Sincerely,
Reco A. Chavis