Talk to your friend at work. Tell him you are interested in buying his house but you do not have the money to buy it and fix it up both. If he will sell on a land contract, you can buy it finish it off and get a new bigger mortgage, and pay him off in a year.
In the meantime you will pay the payments, insurance, look after the place and have it finished. What has he got to lose?
If you finish it off and can’t sell it you can always refinance it,and move into it or rent it out.
I am new into real estate investing. I have been studying off and on for a few years, Carlton Sheets, Robert Kyosaki and so on. I feel I am ready to go strong and buckle down on the studying and investing. I just found this site and can’t seem to stay away. This site really gets my heart pumping everyday I read the new posts and archives.
My question is this. A friend I work with has a new construction home for sale. He bought it about a year ago to move his family into. Sold his house on the lake for a good profit, lived there for 2 months and decided they didn’t like living in town. They bought another house outside of town and put this house on the market. It is a very nice split level in a new construction subdivision. The killer for the sale is that the lower level is not finished. They are asking 129k. Houses in comparison to this house that are finished in the subdivision are around 159k. Lower level is ready to be remodeled, plumbed for a second bathroom with room for 2 more good sized bedrooms and another living area. All landscaping is done.
I am not sure what his loans are but he has told me that his wife’s income last year went to paying their 2 mortgages. He has it listed with a realtor who he did his other deals with so I am not sure how to work the realtor out on a no cash down deal.
My question is: How do I approach a coworker about the possibility of a deal? I work with him quite often and I know he would like to get rid of this monkey on his back, but I want to make sure he feels it is a good deal so there is no animosity at work.
I would like to get into this deal with no money down so I can use my own funds to finish the lower level. He had a contractor give him a bid for 10k to finish the lower level. I really feel that if I can turn this property around with the lower level finished and owner financing that I could get somewhere in the neighborhood of 175k for it.
Any help is greatly appreciated.
Good Investing and thanks,
Brett