Do you need to write a competitive offer on your dream home before you've sold the one you're living in? Our unique in-house program allows buyers to write a non-contingent, "cash-like" offer, which can give you the edge you need to stay one step ahead of the competition.
Scenario
Client owns a home, and wants to make a non-contingent offer on a new home listed at $950k. They think their existing house will sell at $900k, and they owe $300k currently.
What we would propose:
- Masters Team Mortgage would lend our own funds on the NEW house at $950K, with deferred monthly payments at a current rate of 11% interest only. For every month they have our $950K loan, it “grows” by the monthly interest amount of 11%.
- We would forecast a “worst case scenario,” that their house sold for $800K, versus $900K estimation.
- House sells at 800K- less real estate commissions of 6% and 5K in closing costs, minus the$300K first mortgage client would net $445K when their house sells
- Now, we take the $445K and refinance our private loan of $950K, and then would use the 445K to “buy down” our loan into a new 30 year fixed rate loan.
- We charge 1% (point) on the private money loan at 950K. Then, the client can choose whichever rate/cost, subject to market rates, once their departing home gets into contract.
- Client can write this offer with NO loan contingency or appraisal contingency, and as little as a 12 day close (some agents even choose to write it as a “cash” offer).
*** We do place a cross collateral lien on the departing house, usually 20%. This is just to protect us as we are lending 100% of the new house. the lien is released and the portion to us is paid back once the client sells their home!