Re: Have a good deal…need some creative ideas!! - Posted by Colleen in SLO
Posted by Colleen in SLO on June 22, 1999 at 16:38:31:
I agree with Dick and Dan, it’s an awesome deal, buy and hold. Here’s how I would do that:
offer 42,000 half cash now and he carries a second
Advertise in your paper "$26K 50% LTV 30 years 12% int"
Or, depending on yur area, find a hArd money lender willing to make this loan. (It shouldn’t be too hard)
Pocket 5000- that’s your cash, baby!
Pay the seller whatever he wants per month on the $21,000 second loan, just adjust the interest rate and term to save you the most money in the long run. (I’d aim for 6% interest for 10-15 years)
Unless the vacancy rate is really bad or the seller is misleading you about something, you should make AT LEAST 500/month cashflow, even after taxes, insurance, property managers and other expenses are paid.
Or, if you’re really hot to flip it, offer 40,000 cash and ask for 60-day escrow, find someone who will buy at 55,000 to 65,000 with their own financing, or someone who will buy at 75,000 with 20% down if you finance and sell the note at closing. I guess it depends on how the numbers work out.
Hope this gives you some ideas…let us know how it all works out!