Posted by Karl Grube on March 20, 1999 at 18:14:40:
I would option the property for 12 months at $69,000. This will give you time to thoroughly inspect the structure of this 1910 house. You can sell the option at anytime during the 12 months. Find out what architectural codes and requirements have to be in place regarding the exterior structure of the building. Checkout city hall grants, guarantee loans and other subsidities. WRITE A REPORT in detail for the owner if you do not exercise your cash option to purchase. This report will serve as your consideration for the option. The report will also help you sell the option to an investor. . . . Karl Grube, Ann Arbor, Michigan
Greetings, I have the following deal on the table for a circa 1910 home in a National Historic District which is undergoing major revitalization. Sales price is $69,900, owner owns house free & clear and has no reason to be motivated. I want to get in with as little cash as possible. House remodeled and appraised at $78,000. I offered $500 earnest money and up the sales price to $74,000 to cover closing costs. Seller pays all closing costs. I have financing for 80% and asking seller to carry 15% at 11% for 15 years/2 year balloon. Interest only payments for the two years. I can get a loan for the 5% down from family not payable for 2 years. Can refinance at that point and pay everyone off. I can rent it for $950 mo to cover my payments of approx. $800. After one year my family will move in. Property values are rising rapidly in the area partially due to the tax benefits offered by the city and nat’l gov for the historic status. Anyone know of any other creative ways to finance this? Thanks.