Posted by Aquanaut on January 01, 1999 at 14:37:46:
… is in the money-making ideas section, not how-to, and is authored by Tim Brandt.
Carleton Sheets - Posted by Reba Harshel
Posted by Reba Harshel on January 01, 1999 at 10:19:17:
Hi
I recently bought the Carleton Sheets Course. 2 yrs ago got a great deal. No money down, land contract with deferred payment for 6 months, enough time to fix and rent the place.
Haven’t found one like that again.
I really do get confused. Right now there is a 4 plex for sale. He wants 50,000 Owner willing to finance all.
Credit check is required. (Is that a given?)
However he wants me to pay the realestate commission of 3500 dollars. I guess that shoots the no money down aspect of it.
I did what CS suggests asked the agent to take the commission in payments and was refused.
Any help or suggestions would be appreciated…
Lastly I wanted to ask, what % rate do you offer? Higher or Lower than the current.
Also these are all 1 BR. I know CS frowns upon that…
Thank You,
Reba
Re: Carleton Sheets - Posted by Russ Sims
Posted by Russ Sims on January 02, 1999 at 02:22:11:
Reba, did you also do as CS suggests and “hint” that you have an agent of your own that you could bring to the deal? If the listing agent fears losing half of his/her commission to another agent, he/she may well rethink loaning the commission…
Re: Carleton Sheets - Posted by Mike O
Posted by Mike O on January 01, 1999 at 23:58:02:
Reba,
One way to get some of the commission is to close on the 2nd or 3rd day of the month. Depending on the current rents you could possibly come up with about half using the pro-rated rents from the month you close. Then reapproach the agent and ask to finance the balance.As for rates start low and negotiate upward, someone just may bite on a 5 or 6% rate. Hope this helps.
Mike O
Re: Carleton Sheets - Posted by Aquanaut
Posted by Aquanaut on January 01, 1999 at 13:15:17:
Hi Reba,
You haven’t mentioned market value of the 4-plex or if the cash flow will support the property, but assuming you have those issues in hand:
If the owner will finance the whole purchase maybe he will accept a 2nd mortgage position allowing you to get a new first mortgage for 50-60% of the purchase price and let him pay the commission from the loan proceeds. Of course you will then have added closing costs for the loan, but if the seller likes the idea of getting the extra cash up front, you may get him to pay part or all of your closing costs.
Also, you may want to look at an article in the how-to called ‘Financing 110% of the property’ or something close to that. I’m no expert, but I hope this helps.
P.S. As for the interest rate, I’d suggest you start at or below bank mortgage rates and negotiate well.
Good luck!
Aquanaut