Posted by Gavin Wilkinson on September 14, 2004 at 13:19:15:
You don’t even have enough money to pay closing costs!!!
New business endeavors always soak up more capital and return less than you think in the first year. You have no emergency fund. If you are laid off, or get sick, or your mother gets sick or someone crashes into your car, or the economy goes south or any one of a thousand other things goes wrong you are bankrupt next month!!
Suppose the condo does not build equity. It loses 10% as soon as you sign the paperwork, because to resell it you will incur a real estate sale commission(6%) and sales costs (3-4%). Suppose prices go down next year. You could be underwater by $20,000 in 6 months.
Rent for a year. Save some money each month. When you have enough money for a 3-6 month emergency fund, try purchasing again.
Posted by Michelle on September 14, 2004 at 12:20:30:
Can anyone recommend a high-risk, private lender who could loan me $3,500 in order to help me with closing-related costs on my first home (a $130,000 condo) so I can go to settlement by the end of this month?
My credit score and income are low to moderate
I do NOT have collateral (I do not own a car)
I have been on my job for one year
I have begun a new solid business endeavor which will pay off soon
I could repay the loan with interest by an agreed-upon time. This would be a private loan, based on the fact that I will be building equity in my home, and I am beginning a new business in addition to my job - not based on my current credit score or income.
Is this possible, or out of the question for someone in my situation?