How can i buy this triplex? - Posted by Ben W
Posted by Ben W on February 08, 2000 at 15:54:16:
I have a BIG question:
I am new to the game, and after making many calls looking for the right “no money down” property i have found a GREAT triplex that i have submitted an offer on, but don’t know if the owner will accept it–if she doesn’t, i’d like to have a counter ready, but i am stumped.
Here are the numbers:
3 2BR,1BA completely rehab’d, grass yards, GREAT condition!
She is asking 96,500
Appraised for 100,000 (CMA) in 1996
Seller owes 60,000 in non assumable mort
Has 5,000 note (no payments, forgiven 1,000/yr and is
Her rents are 1260.oo/mo, and HER mort pmt is 530/mo
Owner agreed to take a second (may be changing mind)
I have a lender (former investor who does creative deals) who can get me 85% LTV on a first, with an underwriter who will allow a second.
My offer was to take the 85% mort, pay off her 60k mort, give the rest to her in cash (of course she wants as much cash as possible), and she was going to give 5% back to me for fix up costs, and carry a second for a total of 20%.
She originally liked the offer, but may be changing her mind. She now says she’d rather not carry a second, and would prefer all cash, although she has not yet rejected my offer–she is “crunching numbers” in her words.
There is great potential in this offer: 5k for me (which i DESPERATELY need), potentially 1-200/mo positive cash flow, and my first success!
HOW CAN I SAVE THIS DEAL?? I’ve thought about making the same offer, but giving 10k above asking price (since she’s asking below FMV), in effect giving her 8k more cash, but she’d still have to carry a second.
If she decides she will not carry a second, is there ANY OTHER WAY TO GET A SECOND? Would any brokers loan 25% or so for a second? Are there other options? I have no out-of-pocket cash.
Any advice would be GREATLY appreciated!