Posted by Marcus (IL) on March 17, 2000 at 15:50:22:
I’m a newbie, but here is my $0.02 worth.
I’m not sure how to delay the sell, but if you make the 15K offer you’ll probably have at least three weeks to close. If the ARV is any where near the 85K you mentioned you shouldn’t have any problem getting a loan from a private mortgage lender.
You didn’t mention the repair cost, or if any comps were done; but if the numbers work, I’d go ahead and get a 2 year balloon loan, with only interest payments.
There is a “Chicago Creative Investors Association” meeting coming up this weekend.
Contact: Jane Garvey
Telephone: (630) 858-4663
When: 3rd Sunday of the Month 6:00pm
Where: Hillside Holiday Inn, Chicago-Regional
Someone there may be able to help you out with financing or information.
I’ve run across a hot property for sell in the Chicago area being sold by a bank for only 15k. How can I hold off the bank from listing it when I only have 3k to put down. I’m looking for someone to finance the balance but if not I can take out a equity loan. The property is located in a HOT market and once it hits the MLS it’s sold and I’m out the picture. The bank is firm on all cash and won’t budge.The property next door to this property was sold for 85k back in '95and it’s was only a 2 bed. frame home…
John,
I would need more info on this property, but if all checks out, get it under contract NOW for the $15k, or less.
Make it an all cash offer, and then find a buyer to flip it to.
If you cannot find a buyer, or are not sure where to look, drop me an e-mail and we can talk offline.
I can and will help you get a buyer if the numbers look good.
Honestly though, in my mind, there HAS to be something missing here?
Why would the bank sell it for only $15k with no significant problems?
If they are starting at $15k, why offer them that?
Go lower, and see what shakes out.
The bottom linw is that you will never know just how low they will go until you ask.
Like I said, give me an e-mail and I’d be happy to work with you on this one.
Good luck,
Jim IL (the “IL” means Illinois, so I am in the chicago area.)
The info you gave us is scanty, but here are a few questions to ask before you presume it’s a hot deal:
Is the house really comparable to the house next door that sold for 85K five years ago? Is it reasonable to use a 5-year old comp? I would check more recent sales (6 months max).
If it is worth even half of the 85K, why would the bank put it on the MLS for 15K? I would check the property out thoroughly for serious problems: foundation, environmental, electrical, structural.
If you get a thumbs up on #1 and #2, then, jeez, max out your credit cards and pay them cash! Seriously, though, any lender with a brain (obviously not this bank) would lend you 50% LTV if you can prove it out to sell for more “as is”. Assuming it’s a rehab candidate, the finished value could be higher, so get a detailed quote from 2-3 rehab companies on the costs of bring it up to snuff and get the loan, pay off the 15K and turn it.