Is This A Good Deal or What? - Posted by Tim (SC)

Posted by Jim H on June 03, 1999 at 01:32:24:

Hey Tim, you could get a new 2nd mortgage for say $65,000.00 and take out cash at closing. Apply any costs to the loan. No money down, as long as the seller holds a note for the balance. You could even take out more money and split it with the seller as cash towards the selling price.

Is This A Good Deal or What? - Posted by Tim (SC)

Posted by Tim (SC) on June 02, 1999 at 23:00:14:

I have a deal in the making here and need some quick advise.

I have located a mobile home park with a very felxible seller looking to retire and do something else with his life.

There are 10 mobile homes average size 12 x 48; 10 x 50; & 12 x 60
rents include lot payments of 100.00
Total rents for 10 homes = $2750.00

There are 2 duplexes= both rents for unit one total $685.00 unit two $665.00 for a total of $1350.00

There are 3 lots renting for 100.00 each only one is vacant.

Total income= $4300.00

He is asking $330,000.00 but is very flexible on the terms and may even take less if I make an offer this week. He said he would be willing to take back some of it on a note for added security in the future.
He said whatever offer I make him he will want to have a CPA look at it for his protecting. I agreed that would be fine.
He said that the property was zoned RM2 for 54 unit apartment complex several years back he just never pursued that avenue.

He has an assumable 1st of $45,000.00 = payment of $400.00 includes T&I
He has a non-assumable 2nd of $40,000.00 = payment of $395.00

He also pays the water bill for all the lots.

The property has been on the market for quite some time. The area is not bad it does have a nice park down the street that is clean and well kept.

How do I get around the 2nd mortgage and still have a no-money down deal.

What would you do if it were you?

Please help me this could be my first big deal!!