Land contracst/Refinancing out - Posted by Garry FitzGerald II

Real Estate Investing
#1

Posted by JPiper on February 12, 2001 at 24:29:07:

Garry:

Your post is very confusing. You’ve got a condo that the owner bought for $70K 11 years ago, that is offered I guess at $65K, that have been selling in the $50Ks recently. Is that it?

So what?

If you want to buy on a land contract and then refi immediately…most lenders will not do this. You’ll need to be in your deal for 6 months to 1 year.

The way around this is to buy at 65% of market value…I guess in this case at 65% of something in the $50Ks. Then you might be able to do so with a hard money lender. 65% of $50K is $32,500.

JPiper

#2

Land contracst/Refinancing out - Posted by Garry FitzGerald II

Posted by Garry FitzGerald II on February 11, 2001 at 11:09:10:

I want to buy a three bedroom condo on a land installment and as soon as it is signed refinance it out at 65 LTV. I know this depends on the lender but what kind of investor should I be looking for? The price is $64,900 with 47% of the monthly income of $850 going for expenses. The places have been selling in the 50’s but the location is very good. Any suggestions on how I can do this if what is owed is higher then the 65 LTV? The owner bought for $70,000 eleven years ago, I am one rent increase away from over a $100 month cash flow on this property. Thanks for all your help.

Garry