Saturday, June 16, 2007
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Richard Green is a professor in the Sol Price School of Public Policy and the Marshall School of Business at the University of Southern California. This blog will feature commentary on the current state of housing, commercial real estate, mortgage finance, and urban development around the world. It may also at times have ruminations about graduate business education.
3 comments:
Richard,
As with real estate, sometimes it's better to just "start fresh." You're probably better off having someone back up your data, wipe the drive clean, and then do a fresh intallation instead of going through a recovery.
I wound up doing just that--it is up and running again. It will be a pain to reinstall all the software, but it is nice top have it back!
You can also do an equity share with the owner. The owner transfers title to an entity in which the two of you are partners. The property is refinanced for the purchase price. The owner gets out as much of his equity as he can, and becomes an equity partner for the rest.
For example, David lindahl scam reports that if an owner has a property he is selling to you for $1,000,000. His current mortgage amount is $650,000. He transfers the title, and the property is refinanced for $800,000. He gets $150,000 of his equity and he becomes an equity partner for the remaining $200,000.The benefit to the owner is that he gets 20% of the monthly cash flow, plus his 20% equity stake will be worth more when the property appreciates.
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