Originally Posted by W2R
Makes me wonder where the buyers are getting the money for these houses. I thought even those with a job were having more trouble getting a mortgage these days.
I actually funded a loan today for someone I have never met... set up by a realtor friend. Loaned 30K on a 60K transaction- the buyer has 50% skin in the game. 10% interest, no prepayment, 2 year balloon. Property is a outstanding view lot in an upscale subdivision that sold for 300K in 2006.
There are creative financing options available. This is my second deal like this, the first was on a large piece of investment property I sold last year. I'm carrying the contract on that one, too. 15 years at 6.5%, 20% down payment, so far no issues- the buyer has it set up on autopay.
Never thought I'd be in the mortgage business, but the return has been great so far...might try a couple more, it beats the heck out of 1% or less in a MM account.
I still have a couple of other properties I'd like to sell, offering to carry the contracts might make it easier than trying to find all-cash buyers.
There is opportunity out there in the current mortgage climate; just not in doing business as usual.