Posted by Randy on September 07, 2003 at 16:49:31:
$3600 / month PI @ 8% new money equates to $490,620 new first mortgage. In other words if you went out to borrow the money to buy it at 8% to have the same payment as him you could borrow $490k.
If you purchased it with 80% financing your new first would be $4,079.00. So one suggestion is if the seller will carry a 20% second and you got a new 80% first you might be able to buy it?but can you cash flow it? It all depends on what the seller needs and is willing to do in the form of reduced sales price or carrying a second. Talk to the seller, and then come back with more info. It?s impossible to offer suggestions without knowing the options!
Posted by K. M. on September 07, 2003 at 12:28:40:
I’ve been talking with a gentlemen who has a 30 units for sale. Been on the market for about 30-45 days. He is open for anything to put the deal together, he’s asking 695,000
for it. He told me that he’s been averaging $8500 a month, it cost him $3600 a month for mtg. payments. How can I structure a deal or offer him a deal with no out of pocket money on my end. Any suggestions Thanks
Posted by jorge on September 07, 2003 at 17:00:40:
K.M.,
Out of curiosity… are you trying to buy with no money down because you possibly can? or because you have NO money to buy it? Are you depending on the rents to provide for the advertising and the maintanence… etc…etc…? what about if you have 3 or 4 furnaces go out right when winter comes along and you have to buy 3 or 4 all at the same time? will you have reserves for that? Heck what if 5 or even 10 of those 30 units become vacant at the same time and they have all trashed the place… will you have enought to fix them back up and rent them out?
I don’t know you or your financial stituation, but these are some of the questions that Mr. Sheets and other gurus do not really address much if at all…
If this is to be your first deal… think about those questions and much much more before jumping into it.