buy a fixer upper - Posted by RN

import · March 25, 1999, 8:25pm

Posted by mike on March 25, 1999 at 22:33:46:

lender puts up cash, for down pmt and for fix up, lender gets first mtg lien position. seller carries 2nd for difference. crunch the numbers. double the fix up cost.

import · March 25, 1999, 8:25pm

Posted by RN on March 25, 1999 at 21:25:45:

Does anyone have any advice on how to purchase a house that needs a lot of work, they are asking 30k and it can be 2 duplexes, i might live in it myself for a while. it needs a lot of tlc…but has potential…i was thinking there was some way to put in the purchase contract that some things need to be fixed up or i could quite possibly get some money on my mortgage to fix it up…you know offer them 20k but borrow 30k for fixing up the dump!!! any questions, comments or concerns welcomed

thanks

import · March 26, 1999, 9:21am

Re: buy a fixer upper - Posted by lyal

Posted by lyal on March 26, 1999 at 10:21:33:

I’ve also seen this done as “credits at closing” for repair or redecorating. As long as an independent appraiser values it for the requested amount it should be ok with the bank. (They’ll most likely want to escrow the repair funds). You could offer 30k or even 35k with a contingency that you get credited with 10 or 15k at closing to complete the repairs.