Posted by mike on October 29, 2003 at 15:00:26:
get the seller and his note OFF this property, substitute something equal or better than this one, frees up all the equity for a new loan. sounds flexible, so do a little creative thinking and go for it
how would you do this deal? - Posted by verbatim
Posted by verbatim on October 29, 2003 at 11:28:26:
Im trying to figure out how i would go about this. Please help:
If you had a seller who agreed to sell a free and clear property for $107,000 if I gave him $30,000 down.
He?d carry $77,000 at 7% interest, or about $700 a month for 15 years.
It needed $20,000 in repairs and would resell for $169,500 with owner financing after it?s fixed up. [or $153,636 is the ARV]
Before closing & loan costs thats 26k in equity if you retail @ 100% of arv, & 43k if you L/O it
How I would go about getting a loan for repairs and downpayment only,
since the seller has agreed to have their note in a second position behind any loans i get for repairs & the down?
I’ve talked to 1 ‘hard $’ company that said they loan on the purchase price & repairs up to 70% arv with 14% interest,
& they usually steer away from 2nd liens over 10K because if they foreclose the seller would loose their second lien.
And how would you do the deal?
Any assistance given would be greatly appreciated>
Thanks