Posted by Brent_IL on August 11, 2003 at 10:10:23:
It’s an option if you think you can lower the payments. The monthly payment of a 5% APR loan is around $415. There are usually fewer fees involved when you are refinancing a place that you already own.
The inherent advantages of a subject-to transaction may make it worth keeping.
Help!!!..1st deal…NO EQUITY - Posted by Randy BR
Posted by Randy BR on August 10, 2003 at 19:48:47:
Called the paper last week, Owner just posted ad in the paper. Very motivated, willing to L/O and maybe Sub2. Transfered out of town. House in desirable area, but smaller than usual. 3 bedroom/2 bath, 1017 living.
Situation:
Will sell for loan balance.
Asking: $79,900.00
Comps for: $80,000.00
Owes: $77,000.00
Mortgage: $610.00 per month
Here’s my plan:
Take over sub2 for loan balance, have seller make next 3 months payments, and pay me at least 2k to do this no equity deal. What do you all think???
Exit:
Sell on a L/O for $94,900 w/ 3-5% down.
Re: Help!!!..1st deal…NO EQUITY - Posted by Brent_IL
Posted by Brent_IL on August 10, 2003 at 20:34:15:
Go for subject-to. You can refi after you own it if the payments are askew
$15,000 is a high percentage bump with no other justification than financing. If you don?t get significant activity, decrease the mark-up to 10%.
Try to get your $2,000 through a number of smaller credits in escrow for various items. Many sellers cannot accept the concept of paying you to buy their house.
If the seller balks at 3 payments, try for two-thirds of a payment for four months and one-third payment for another four months, or so.
Check on the relationship between rental rates and ownership costs for similar properties. Are rents so low that no one wants to own? Keep in touch with the seller. He’s not hurting enough to list the house, but double payments will wear thin.
Thanks for the Advice - Posted by Randy BR
Posted by Randy BR on August 10, 2003 at 22:53:17:
What do you mean by refi when I own it? If I did that, why do a sub2 then?