Is there a better way? - Posted by Marvin Nichols


#1

Posted by Al Miller on January 05, 1999 at 15:17:42:

If you`re finding the deals you seek out a realtor
that will work for a fee. Many of them will gladly do
it.


#2

Is there a better way? - Posted by Marvin Nichols

Posted by Marvin Nichols on January 05, 1999 at 08:36:44:

Happy New Year to All,

Thanks to everyone that contribute on this site, it has helped to encourge me and my family to get started with RE. I have been a landlord (of one property) for the past 6 years. Landlording was not designed it happened to me because we could not sell the property. However, through this experience I found that I do enjoy dealing with the people and “slowly” seeing the property appreciate, not to mention taking advantage of the tax breaks each April. So, after some discussion with my wife we have decided that RE in an avenue for us to increase our networth.

My wife is new physician (intern) and upon completion of Medical School many of the lenders in town have offered to extend money in most any situation that you can imagine. We approached one of them with the idea of RE. Our potential properties for investing are VA forclosures. I have evlauated several properties of this type and the facts follow:

  1. The bank will loan us 100% of the purchase price of any property on a one-time payment note for 60 days. The cost to do this is approximately $350.

  2. The mortgage company then originagtes a loan (cost appx. 2.5% of loan amt.) for 80%LTV, using the current Fannie Mae rates. Most of the homes I have evaluated are less than 80% LTV.

  3. Because I am making a cash equivalent offer to VA, I can offer 95% of asking price.

  4. I am currently using a realtor for purchasing and the commision on the sale is 6%. I have asked the realtor to refund to me after the sale 1.5% of sale. I have also considered going directly to a broker and offering the broker a 4%/2% split on any sucessful purchase.

I must admit that I haven’t done as much homework on the rental/sale side of the equation however, my experience with the rental that I currently have has taught me that this is a good market for single family rentals. I have also consulted with other investors that I know who confirm my information.

We would appreciate any help that any of you might offer us in getting started with our idea.

Thank You all,

Nick