how to buy without bank? - Posted by Maria

Posted by E.Eka on September 12, 2004 at 11:17:02:

Re-read what I wrote. You can’t motivated an unmotivated person. Listen to what he wants. Since he owns it free and clear, he doesn’t have to worry about payments and mortgages. Stop trying to make it so hard on yourself. He’s told you. A) I don’t want monthly payments (which means good bye to lease options and owner financing) B) I just want my cash and to be done with it. (He’s taking a discount for a fast cash sale)
Did you plan on using Jedi mind tricks to convince the seller that it is in his best interest to lease option or sub to? He’s not desperate nor is he in fear of losing his units. He’s ONLY flexible because he wants his cash now. Other wise, he’d be like anyone else selling on the MLS.

SO what’s the moral of my rambling story? Get it under contract. Give the seller $100 or less earnest money and market the property and…re-read what I wrote in the previous post!

how to buy without bank? - Posted by Maria

Posted by Maria on September 11, 2004 at 19:24:37:

I have recently found property (corp) which is FSBO and owner is asking $60,000 all cash. He has purchased a new house and doesn’t need any money to move in. Basically, just wants to get rid of the corp. A couple apartment in the building (pretty much the same size) have been sold around $75,000 last 6 months; therefore, the asking price is about 20% below market value. I asked him if he wants to sell either lease option or owner finance, he said that he just wants to get rid of the apartment and doesn’t want to deal with tenant at all even in the long run, he can make money. I also suggested that I will pay him $60,000 and 10% down, then I will find buyer (owner financing) with higher interest. Yet, his answer is the same.

The reason why I can’t buy the corp even though it’s below market value is that I don’t have cash. We just claimed bankruptcy and we can’t qualify loan.

I would like to buy this property to generate cash income.
Is their anyway to buy the property without bank?

Thank you

What are the numbers? - Posted by PBoone

Posted by PBoone on September 12, 2004 at 09:25:07:

You stated you wanted cash income, what is the current cash flow vs projected?

Re: how to buy without bank? - Posted by dwayne`

Posted by dwayne` on September 12, 2004 at 24:18:51:

how much is owed on the property? If it is free and clear have him carry. If not have him carry. Lease option it. He will not have to worry about tenants you will. And then sell the property for a higher price.

Re: how to buy without bank? - Posted by E.Eka

Posted by E.Eka on September 11, 2004 at 20:46:33:

Since it’s 20% below market, you don’t have cash, you’re credit is poor(due to bankruptcy), I strongly suggest you get it under contract and flip it to a retail buyer. Especially if it’s vacant. The flip is actually assigning your position to perform in the contract to another person for a fee. You can attach a performance mortgage and that way you get paid at closing. There’s no closing costs, or holding costs. Get bronchick’s book on flipping and read it. Then get your contract and do the deal. Give the seller earnest money of around $100. and then market the heck out of the place.

Re: how to buy without bank? - Posted by maria

Posted by maria on September 12, 2004 at 08:31:23:

Thank you for your reply.
The owner own the property free and clear and he hasn’t negotiate anyone yet. (this property was reffered by my firned who is super of the building)
When I mentioned him about lease option and explained him that he will never worry about tenant since I will pay him monthly, he said that all he wants to do is get cash and move out and doesn’t want monthly income. That’s why he is asking 20% below market.

If I can’t buy the property, I will either rent or lease option. Since I am not qualify bank loan, I thought to borrow money from friends and family. However, it’s not really good idea for me.

Maybe flipping is the only way to have make money for me.