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!
If this program sounds like just what you or someone you know may be looking for, please reach out for more information!