Posted by B Dixon on March 25, 2002 at 11:41:43:
See how much paper the seller is willing to hold. If they’ll hold up to say 25%, then you can easily get a loan @ 75% LTV. Make sure the numbers add up, before you close. Can it rent for more than you’re paying? Is there enough cushion to allow for unforeseen expenses? Crunch your numbers first, but so far, it looks like you’re on the right track.
How to finance this potential deal?? - Posted by AR_CT
Posted by AR_CT on March 22, 2002 at 15:30:59:
I’ve been reading this forum and is a great place to learn REI. Thanks to all of you who share your expertise with all the beginners, but I still need some Financing How-To ideas…I would appreciate if anyone could direct me as to what is the best way to pursue the following potential deal:
A four unit multi-family sells for $ 120,000, the owner has approximately 13,000 in equity (mortage for 107,000). He’s listing the property with a Realtor so I figured this much out:
Borrow the broker’s commission, offering a note in the amount of her commission ($ 7,200) and since the owner doesn’t need down payment, offer the owner another note for the equity ($ 13,000). That leaves me with $ 100,000 I need to come up. My credit rating is really good (I don’t have the exact number though) and I don’t want to use any of my savings in this deal.
Is it possible to obtain a loan in the amount of $ 100,000 (83% of the value of the house) without a down payment with a bank or mortgage broker?
I own a house but I’m hesitant to use the equity in my house (approx. $ 50,000) as a guarantee for the loan. I’d like to do a lot of deals like this one, so why should I use the equity on my equity just yet!?
Should I explain the bank or the mortgage broker the details of the deal I’m trying to get into? Any feedback, suggestions, ideas will be greatly appreciated! Thanks.
Re: How to finance this potential deal?? - Posted by Andrew
Posted by Andrew on March 23, 2002 at 22:33:43:
So, why aren’t you taking this subject2 along with all the notes you are using? Or why not use a wrap?
Either way, you won’t need to find someone to lend you the money.
Andrew