User Power
Value/Post Ratio
456%
- Jul 24, 2007
- 4,228
- 19,297
When you did the 10% owner carryback, does that mean that the owner literally comes to closing with 10% for the down- or is it just on paper that he carries 10%?
An agreement is usually put together specifying the terms. The seller may need to come in with money if there is not enough left over but this is an unlikely scenario. It would probably only work for a seller if there is enough equity for them to just put it on paper. If the seller is planning on reinvesting through a 1031 exchange, they won't usually carry paper. Sellers that are planning on retiring or getting out of the business are the best candidates. Sellers that are getting out, want out bad, and struggling are usually the most motivated.
There were no payments and the interest accrued for 2 years? How did you pay this off?
When we sold. The note was actually for 5 years but the deferred interest part was for two. We could have refinanced as well to pay it off but it was much too sweet.
Also, how did you make $300k in such a short period of time?
Par for the course... Fairly typical... What I have been doing on most deals for the past few years. :icon_super:
If you could see the math.... Check out Vollucci's book.