Bargain Dream Home - Posted by David
Posted by David on December 07, 2004 at 22:46:54:
After I had three deals fall through that should have been wrapped up I was obviously frustrated, so I decided to dream bigger to get myself out of my mindset rut. I drove around looking at waterfront mansions (It’s great to be in Florida!) I found a vacant ugly fixer upper with a fantastic view ! But I still can’t afford it (bad,bad thinking) I began to think about how I could afford this property. (I want to fix it up to live in) I started talking to one of the neighbors walking his dog and he told me it had been sitting vacant for two years. AND the vacant lot next to his house has been sitting there for 3 years! The owner was going to build a 14,000 sf house but changed his mind after he found a new site and tore it all down.
I have an investor that will pay a premium for waterfront corner lots, so what I will do is see if I can get the lot cheap enough to flip to cover the points for a hard money loan to fix up my dream home. There is no pre-payment or seasoning issues and the loan would be at 65% LTV.
My plan is to refinance after it is fixed up and pay off the hard money loan, and if I can’t handle the new payments I will rent a couple rooms out to other young proffessionals.
Is there a better way to buy this property creatively? Any ideas would help. Am I just dreaming or can this really be done? I’m no where close to being a millionaire but I am serious about buying this $2 mill + home.
Thank you for all your help!