The second was for only home improvements. Would it be possible to purchase the home for the total of the 1st and 2nd ($62,000) then go to a lender and get a home equity loan or line of credit to which I could write them a check for $60,000? Buy purchasing the house for the 1st and 2nd, I would be reducing my payments dramatically since the 1st was a refinanced 10 year loan. I figured that way, my payments, even with line of credit would be under $1000 a month easy, I would still have 20k in equity, and the property could be lease-optioned easy.
Just curious, tell me what you think all, am I thinking correctly?
I ran across a guy who has a house worth $140,000 (comps & appraisal). They have a 1st for $49,000 (10 year loan refinance) and a 2nd for $13,000 (home equity line,etc). They are building a new home and he had promised the builder $60,000, so he needs $60,000 to give the builder. He is happy if he could get $60,000 and if I would take over his payments, which are $1600 due to the 10 year loan.
What are my options? Is there anyway I could refinance the first two into a 30 year and then get a equity line on the prop and write them a check for 60,000? I think something can be done here and me come out ahead, but I would love everyone’s advice and expertise.
Tell him to refi to get the first and second paid off, as well as getting cash out for the builder. Then take it sub to. That would be around $125K with closing costs. Will it cash flow at that? Do you want to take a $140K home for $125K?
The only other thing I might suggest is asking him what the second was used for. If he says anything aside from things in the home, tell him you’re not willing to pay it. Have him make payments on it, and take the place for around $112K. Why should you have to pay for his stuff, AND the home? It’s worth a shot. Now a $140K home for $112K sounds pretty darn good.