Any ideas?? - Posted by MasonNV

Posted by MasonNV on December 07, 2000 at 02:20:15:

That’s what I figured…I think we’ll draw up an offer for 65,000 see what happens…realtor says banks dont pay closing costs but I think if they want to get rid of this trash heap they will…

Thanks for the help

Mason

Any ideas?? - Posted by MasonNV

Posted by MasonNV on December 06, 2000 at 18:06:52:

hi all–

My fiance and I have found a house we think will be perfect for our first home (we will live there). It’s a definate rehab…but only needs cosmetics…the carpet has piles of cat waste and it needs paint…the comps in the area are coming in at 95k.

The bank recently took this one back and is asking 79k for it…My fiance wants to get in and clean it up, I however want to buy at the right price…the cost of fix up are estimated at around 7,000, and since we will be living in it, holding costs aren’t an option…

any ideas about how to structure a deal?

I would like to be able to refinance and pull some money out of it within the next year…

I want the money to be there when I refinance…(I’m hoping to get 10K or so out of it, and still leave some equity there)

Appreciation in the area is at 8-10% a year right now…so it’s a good buy at the asking price, but I know there is a way to get a screaming deal…thats what I want, but I also dont want to upset Sara because I bid too low…and some one else got it…emotions are involved…yuck!

Where do I start?

Thanks in advance.

Mason

Banks do pay closing costs ! - Posted by Albert

Posted by Albert on December 07, 2000 at 12:00:35:

Banks do pay closing costs. I get it all the time.

Re: Any ideas?? - Posted by phil fernandez

Posted by phil fernandez on December 06, 2000 at 18:44:19:

If the house is truly worth $95,000 fixed up here is where the bank is coming from.

$79,000 bank is offering
7,000 for fix up
6,000 commission they won’t have to pay


$92,000 not too far off of the ARV of $95,000. The bank isn’t giving you a great deal here.

To answer the second part of your question about getting $10,000 out of the deal after you buy, you would have to buy the house in the $65,000 - $68,000 range in order to have a LTV not exceeding 80% so that you can refinance and pull your $10,000 out of the deal.

Here’s an idea - Posted by BillW.

Posted by BillW. on December 06, 2000 at 18:35:48:

Tell the bank that you will give them the 79K IF they will give you financing and CREDIT YOU the 7K rehab costs. Tell them you’ll take it as-is, right now. The worst they can say is no. If they say no, offer to split the rehab costs. Also, ask if they will allow their “credit” to be used for your downpayment.That way, you might be able to get in for "NO MONEY DOWN!"
Good luck… BillW.

Re: Banks do pay closing costs ! - Posted by Jim KC

Posted by Jim KC on December 07, 2000 at 12:38:55:

Albert,

Do you do this primarily on foreclosures or are you able to get a bank to pay closing costs on other properties as well? I’m new to REI and would be interested in hearing more about the circumstances of such a deal. Could you give me an example?

Thanks in advance,

Jim KC