Hey team, hope you guys are doing well. Hey, last month I had mentioned this, ah, buy before you sell program and, uhm, it is a big deal and I wanted to share it with you.
I just finished my first one. I have a good, law officer friend of mine down in Phoenix. He’s done like five of these. And again, this is an arrow that you’re going to want to have in your quiver. So, ah, this deal was not in Salt Lake City.
It was out in Draper and, of course, I’m, I’m whiting out the, the names of the folks, you know, to, to stay all compliant and all that good stuff. But, ah, long story short, uhm, this was a purchase that we did where they haven’t sold their existing home. We were able to pull equity out of the existing home.
And so actually I want to show you that first. So, their existing, home loan is with, ah, good old Mr. Cooper and they owe about 682 on that.
Ah, the home is currently listed for just over, like, 1.4 and, we were able to do a 0% bridge loan for 422,547. 422,547. So, when you add that to the existing mortgage, that puts the, uhm, the overall amount they owe on the departure residence, the one that hasn’t sold yet, at about 1.1 million.
And, again, that’s up at about 1.4 and change. So, we’re about 75% loan to value overall. But, again, this bridge loan, there’s no interest, no payments, nothing to ratio and they have a bonafide offer to buy this existing home, the departure residency. So, I don’t have to ratio or hit them for that. I just this payment of another $5,000. So, not having to hit them for this $5,000 payment and a bridge loan for $422,000, is why this can go.
We don’t have a ratio problem. So, then on the new home, note their cash to close is $422,824. Well, she’s getting $422,547. It’s almost the entire amount. Higher amount needed for the down payment on the new home is coming from the, uh, the old home that hasn’t yet sold.
So, we’re able to do this. The new home purchase is $1.45. This amount down is 30%. So, we’re going to finance the remaining $1,015,000, 70% loan to value.
It’s about a $7,400 payment all-in and she’ll still, when the old home sells, she’ll still get another $100,000 out of it that she can then put down on this loan. We can either do a recast for it or just refinance it if it makes sense. But that’s how these things work.
So, they’re a great way to go for somebody that, you have to have equity in the existing home that allows them to buy the new home without selling the old home first and make everything go and not have to worry about the existing first mortgage or a bridge loan.
That’s why this thing can fly. So, again, I’ve just thrown a lot at you. Uhm, if you have, uh, you know, opportunities like this you want to know more about, please reach out and we’ll talk about it.
Otherwise, please keep this in mind. This will help you sell more homes in 2025. Thanks for watching and we’ll talk to you soon. Bye.
