If someone could help me out - Posted by Mark Nardell

Posted by JohnWe (NoCA) on January 26, 2000 at 18:16:24:

You’re on track. Appraisal value and FMV are the same (at least for this example. Some appraisers will appraise for more than FMV, but that’s a whole other topic!). If the house appraises for 80K, then the deal would work.

If someone could help me out - Posted by Mark Nardell

Posted by Mark Nardell on January 24, 2000 at 23:40:27:

I am new to all of this, but very interested in realestate investing and investing in notes. If there is anyone in the detroit area I would be interested to hear how the market is. I have purchased carlton sheet’s course and thought it was very good, but i have not finished the last couple chapters. I just got it two days ago. Here is my question I love the idea about being able to take cash out at closing. Is it possible to take a higher loan than what the asking price is and than get the rest of the loan in cash at the closing.
Here is the scenario. Let say there is a house with fmv of 90,000 and the seller wants to get out and is asking 65,000 cash. could I get a loan for 80,000 and take 15,000 with me at closing. I would also tell the seller to take care of the fee’s and commision since I gave him what he was asking. I would be getting 10k of equity, too. My credit is good. Couldn’t I just get a loan from a bank or mortgage lender for 80,000. I do not want to put any money down… Than i could sell it for fair market value and possible take home another 10K… How can I convince someone like the bank that this house has a fmv of 90,000 without having to get an appraisal??
If I am way off please tell me. I am excited about realestate investing and all of the great things it has to offer. Thanks for the help…

Re: If someone could help me out - Posted by JohnWe (NoCA)

Posted by JohnWe (NoCA) on January 25, 2000 at 19:12:51:

Can you get a loan for 80K? yes.
Can you convince the bank of 90K FMV without appraisal? No.

Re: If someone could help me out - Posted by marc

Posted by marc on January 26, 2000 at 17:48:06:

I’m also a newbie, amd my question is. Why not get the house appraised for 90k. Is that different from the FMV? Or is it the appraised value less than FMV? Let’s say it appraises for 80k would the deal not work. Or has it something to do with the lender only lending a certain percent of the value. Help me understand.