Posted by Brad (GA) on December 03, 2000 at 09:55:56:
Thanks JohnBoy! Here’s the numbers:
Selling price: 150K
ARV: 275K-285K
Rehab costs: 45K-50K (give or take 5K)
I would really like to refinance and hold. This duplex takes in about 2-3K / wk in the summer (on beach). I already have a bank that will refinance 90% of the value. I’m hoping to pocket some green and keep it. If I can’t afford to keep it, then selling won’t be a problem.
But being that I’m new to this, its a heck of a lot easier on paper than it is in reality.
Posted by Brad (GA) on December 02, 2000 at 23:18:34:
Is there a way to prolong the purchase of a property, in order to go in and rehab?
Ex. Resort duplex (165K)needs significant rehab and the seller will not reduce price. I want to give the seller their price, but my terms.
Can I buy with say 5K down upfront with a IOU in 6 months?
or
Could I pay 25% of purchase price now and 75% in 6 months?
The reason behind this is to cut down on Hard money costs. (10pts, 14.5%, $2000. closing)
Never done this, so please advise. Also, its listed with a realtor. And that’s a whole new question…
Brad technically it’s called owner carry financing not an IOU. You want to make sure you close the get the title, BEFORE you put money into the rehab. Not sure if that’s what you were thinking.
Posted by JohnBoy on December 02, 2000 at 23:29:05:
You can do pretty much you want to if both parties are in agreement on it. You can buy it on contract with 0 payments for x number of months at 0 interest with a the balance due in full by x date.
Just make sure that if you do something like this that the 6 months will be plenty of time to complete your exit plan.
What will you do with it in 6 months after you rehab it? Refinance and hold for income? resell for a profit?