Posted by Ryan on August 28, 2003 at 22:57:36:
Where are you located at?
1st Deal…What to do??? A little help pleaz! - Posted by Mike
Posted by Mike on August 28, 2003 at 21:37:00:
After months of searching I think I have my first deal…but I am not sure how my exit strategy should work …they look similar. Any other suggestions??? Roll the numbers…
4/2 1700 sq ft
Comps 140+
Contract to be signed on Tuesday at $95K, seller wants all cash (has a 61K mortgage…but won’t consider sub2).
Market rent 1,000/mo
Option #1 Flip property to another investor, do double closing for a quick $5 to 10K
Option #2 $95K Hard Money loan, 5 points at 16% interest only, 6 mo term and attempt a retail flip at 90%(125K) of FMV
Costs
Estimates Loan Costs, $4750 points, 6mths interest 7,600
Closing costs on purchase % sale total $7K
Gross Profit
Sale at 125K totals 30K
Net 10K
Opinions?
a couple of more alternatives - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on August 29, 2003 at 24:18:57:
Mike----------
A couple of possibilities. If it will sell readily, get an option to purchse it for about 3 or 4 months and then resell it retail during that time. Result: no loan, no loan costs. The buyer gets the new loan.
You sell it for more like 95%-100% of market value. If you are noticably below market value, it probably can be done, if your real estate market is reasonably active.
Good Investing****Ron Starr