Posted by Ed Garcia on January 03, 2001 at 09:50:32:
Cash Strapped,
Be careful when dealing with high dollar houses.
Asking Price: $500,000? No body will pay full price. They’ll want to offer less.
As the house sits on the market, you’ll feel the PRESSURE
of the monthly payment, and will start to cave in.
Sales Price $460,000
-6% commission $27,600
Now you’re down to $432,400. We haven’t plugged in loan cost, or holding cost.
If you bought the house lets say for $412,000. Your loan cost at just 2 points + closing would be $11,240. If you sold it after 3 months of being on the market, and it took 45 days to close. Your holding cost would be approximately $17,710. High dollar houses don’t sell right away.
Advice on Financing for a Flip! - Posted by Cash_Strapped
Posted by Cash_Strapped on January 02, 2001 at 13:51:55:
Hello,
I have located a good deal in the form of a House(REO) in an Upscale Neighborhood here in town. The market value is $550,000 and it can be bought for $400000-$425,000.
My plan is to buy it and put it back on the market for quick sale at $500,000. I have contacted hard money lenders who require me to put in 10% as my portion of the investment but i dont have that kind of money.
Are there other options/avenues that i can explore? I am willing to partner with someone on this deal and split the profits or refer it to an investor for a referral fee.