Posted by BillW. on February 25, 2001 at 12:26:00:
Stuart, By my comment here, I did mean that you would buy it and get new financing, not that the owner would get refinanced. If you’re going to buy it for way less than retail, it should be no problem to get a new loan unless you have a credit problem.
BillW.
Advice PLEASE ! - Posted by Wayne(VA)
Posted by Wayne(VA) on February 23, 2001 at 19:58:45:
I made a call to a ad in the paper today and I would like to make something happen here.
2 Bdrm SFH w/ 1 Bdrm Apt (sep enterances, bathrooms, kitchens)
3 yr. old roof
Heat Pumps installed in both units 6 months ago
2 Bdrm now renting @ $550/month
1 Bdrm now renting @ $400/month
Mortgage balance $68K
Will sell for $90K, appraises @ $130K
Owner is in the process of evicting tennants in both units. He is tired and fed up with landlording (it’s a older gentleman). He wants his $22K NOW, says his disability payments just aren’t enough for him right now and he is willing to finance the $68K @ 8% over 15 years. He wants me to call Citibank and try to qualify to assume the loan, gave me the loan number and everything.
This guy kept me on the phone for over 1/2 hour telling me all that this property was his “picture perfect” home when he moved out of it 3 yrs ago.
The property is located about a stones throw from Quantico Marine Base and I know this could be a win/win deal if I can make it happen. Only problem I have right now is getting the $22K he needs to close this deal, any ideas ?
Re: Advice PLEASE ! - Posted by Steve
Posted by Steve on February 24, 2001 at 23:46:33:
Wayne, If your unable to assume the mortgage, I might be able to help.I have a contact that will cash out your seller at closing & getting that property for you. Give me a call & I will give you the details. 914-441-8217.
Steve
Re: Advice PLEASE ! - Posted by Steve
Posted by Steve on February 24, 2001 at 23:31:34:
Wayne, I believe I can help if your not able to assume the mortgage. Since he is willing to offer seller financing, I have a contact that will be able to cash him out at closing & get you in to that property in not time. Give me a call and I will explain the details. 914-441-8217
Re: Advice PLEASE ! - Posted by Rocky
Posted by Rocky on February 24, 2001 at 11:03:58:
Wayne,
Offer the seller $120,000, since the place appraises for $130,000. On the day close have the seller cut you a check back for $30,000 “for needed repairs”. Of course you do not let the mortgage company no of this little transaction. Bottomline is that you put 20%down, secure a new first mortgage, and have $6000 to pay closing costs and any upfront fees. You should be able to secure a loan @ 8.25%-8.5% on a 20 year am. Your payments will be about $850.00/ month so you will need to up the rents. But even if the property breaks even it is still a good deal to buy a property and have that much instant equity.
Good Luck!
Rocky
Why don’t you refinance - Posted by BillW
Posted by BillW on February 24, 2001 at 07:54:16:
Wayne, If the property is truly worth 130K, it would be easy to refinance for enough to get this seller his 22K. If you can’t get refinanced, why not offer him what you can for a down and offer to make payments to him on the balance. If he’s living on disability payments, maybe all he needs is a better cashflow instead of a lump sum payment.
BillW.
Rocky is JailBait - Posted by TD
Posted by TD on February 27, 2001 at 17:22:35:
Go directly to jail - such dishonesty should NOT be tolerated. You MUST notify ALL parties concerned, and that includes the lender.
Re: Why don’t you refinance - Posted by Stuart
Posted by Stuart on February 25, 2001 at 11:20:44:
I have been reading this idea in the posts for quite some time. My question is, how could you refinance it if you don’t own it? Would you have the owner get an equity loan against it first?