I need good feedback (serious) - Posted by Fletch
Posted by Fletch on March 06, 2002 at 24:06:16:
Tonight I met a couple of folks who might end up being my new best friends. They may have brought me my first deal. They are in their sixties, have been starting and running different business ventures including real estate investing for 40 years. They told me that they are tired of landlording and are looking to sell a few of their properties. I asked if they were planning on cashing out. They said not at all. They would be able to carry financing. I said what kind of down payment would you need. Wait a second, I am so excited that I’m getting ahead of myself.
The property is a 4 family in the best neighborhood in the area. Property values keep going up. Crime is nonexistent. They have been renting to three older couples and a microsoft exec who is never there for the last 12 years. Payments are always on time. (I’m really wondering why they would want to sell.)
Anyways, they are asking $300k. I said what kind of down payment would you need, 10%…?
They said,“not neccesarily.”
At this point I was trying to hold it in!
I asked about rent and they said it brought in $2600 per month.
Now, I haven’t looked at it yet, but I’m thinking. 15k down.
Owner financing 95% over 30 years @ the best rate I can get. Maybe they will take 6.5% I’m looking at mortgage payments of $1850?? But I don’t know how to calculate insurance and taxes without calling the right professionals.
Can anybody out there help? What do you think? Time is of the essence. Anybody out there who reads this, please give me your ideas. I’ll be waiting.
I can’t wait to send JP my success story about my first deal.