24 - Wednesday, August 21, 1991 - North Shore News

Prepare complete package for bank’s

From puxe 23

forgoes the sales commission in
exchange for a share of the own-
ership, the vendor takes back a
second mortgage and an investor
makes up the difference.

¢ Pay more than the asking price
in exchange for having the vendor
take back a regular second mor-
tgage and a third mortgage with a
balloon (delayed) repayment. Ex-
ample: Asking price, $100,000.

Offer $120,000. Bank provides
$75,000 first mortgage. Vendor
takes back a (a) $25,000 regular
second mortgage and (b) $20,000
balloon third mortgage with no
interest and no monthly payments
but complete repayment in’ (for
example} eight vears.

**The vendor geis his price, in
effect, a percentage of the profits
down the road, while you get the
place with nothing down,”’ said
Clement.

@ Use ‘sweat equity’? to buy a

Se
=@
y:

ry

fixer-upper with financing on the
future value after you renovate.
Prepare a package for the bank
With appraisals, your budget, pro-
jections. fetters from agents.
Perhaps team up with a han-
dyman, or a three-way partner-
ship. ‘This way, you could eet a
larger mortgage based on the pro-
jected, higher, value to provide
funds not only to buy the house
but to pay for the renovations,”’
said Clement.
When some

members of the

audience asked whether such
methoc, could really work, Cle-
ment gave cxamples of success
stories and added: ‘You must do
your homework and be
businesslike in) your approach.
And be creative. If you don’t ask
for something, you'll never get it,
“And choose willing partners:
the vendor who really wants to
sell during a time when offers are
searce, the bank which has funds
and wants to lend, the investor
who has money and believes in

evaluation

real estate as an investment but
has no time to buy and look after
a place.

“Fair is anything two (or more)
people agree to."

Mike Grenby is a Vancouver-
based columnist and independent
financial adviser who works with
individuals: he will answer your
questions as space allows in his
column — write to him c/o North
Shore News, 1139 Lonsdale,
North Vancouver, V7M 2F14.

[Bs The Lonsdale Quay Market Summer Festival comes

\¢/By alive with the magical sounds of drums, flute and
percussion from the five-piece Guatemalan band,
Kin-lalat. Plus, Ambrose Gardner performs his

S

ORTH SHO

zany magic tricks for the whole family.

August 25th from 2:00 - 4:00p.m.

2 hours free parking underground, or we'll give you a Marker Dollar when you park at nearby
Impark lots and the ICBC parkade (see the Information Desk for details). Or call us at 985-6261.
Open 7 days a week, 9:30 am-6:30 pm and Friday ‘til 9:00 pm Restaurants open after Market closing.

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