Great deal no $$$$$$$$ - Posted by Don-Cols,Oh

Posted by Carmen on April 16, 1999 at 12:21:02:

OK, so your renter would only have $115/month to pay you without digging - $475 + 70 = $545 total payment now. If purchased: $545 minus mortgage ($260), condo fees ($70) and taxes/insurance ($100) = $115 left over for your note. So either wait longer for your $$ (66 Months, total $10,325.28), or balloon it (say after 2 years - you collect $2,530.18 in interest, plus the balloon of $5,410.18 in 2 years)

Sorry for the long answers, I needed a mental break from work today…

Great deal no $$$$$$$$ - Posted by Don-Cols,Oh

Posted by Don-Cols,Oh on April 16, 1999 at 11:34:21:

guy is selling a 2/b 1/b condo for 23,000 a good 10,000 to 15,000 below actual cost. He wants all money up front. Bank says I’ll give you 18,500 but you have to have 20% down, which I dont have. One private lender says since its so low of an amount they really dont want to bother because they will make only a few hundred dollors and they refered me to my bank. Dont know anyone at this time who can loan me any cash for this deal (do any of you?) there is a tenant that has been there for 2 years paying 475.00 a month plus 70.00 condo fees. Looked at it today really clean and very nice. Any suggestions on a deal or where to get money here in columbus, oh.?

P.S. there were 2 other condos people were selling, one was from a mortage company asking 28,000 and is nogiatable but would like to have the money in about a week, the second is for 33,000. Heck I should by them all!! Thanks for all your help

Re: Great deal no $$$$$$$$ - Posted by Paul Mc

Posted by Paul Mc on April 17, 1999 at 02:09:37:

Be wary of condo by-laws. They can change anytime. Do all your homework. Attorneys do only what you pay them to do. (Nothing meant against attorneys)

Condo Caveat - Posted by Carmen

Posted by Carmen on April 16, 1999 at 12:10:10:

First, to answer your question, how about getting the seller to create a note (to you), which he can sell at closing for a discount? Too much info to go into, but many good articles and cash flow forum can help.

Or, how about a “retail flip” - tie it up for 30-60 days, then work like heck to get a retail buyer - pull out all your tricks, and make your offer to everyone in that condo - I’m sure there are a few renters who would love to own “if they could only afford it” … - offer owner financing if you figure out the Note thing; or offer to take a second for the down payment (20% of, in the low case, $33,000 is $6,600, still giving you $33,000 - $23,000 - $6,600 = $3,400 cash now (minus closing, and try to get the buyer and seller to pay as much as legally possible)-assuming no down payment from the buyer. If you make your note short or have a balloon, the balance can be paid in a few years - plus monthly income on the note)

In this area, rents on 2B condos are (on the low end) $600, so this would be a great deal for a “future homeowner” - about $260/month on their mortgage, + condo fees (say $60), + taxes/insurance (say about $100) = $420, which still gives them about $180 a month without digging any further into their pocket to pay you on your note. If my T-Value calculation is correct, that means that with an interest of 12%, your note would be paid off in 46 months (for a total of $8,262.77) under a “normal” amortization - principal and interest.

Just a little PS on Condos - make sure you have an exit strategy. If you are going to keep for rentals, don’t forget to add the condo fees to your monthly costs! and make sure that the condo is “rentable” - many condo docs restrict rentals (had an L/O fall through that way - the condo association refused to accept the tenant/buyer).