Posted by John Corey on June 14, 2007 at 15:25:36:
Hard to say what will be best given the limited details.
For the most part you need to see what you qualify for. Better to get a
deal done then to mess about and loss all the deals.
If the properties need work and have other issues then consider a lease
option deal or land contract where you gain control and can use the
cash for repairs.
In all situations you need to be careful about your ability to refinance.
If you buy, repair and then can not refinance you are in worse shape
than you are now. Hence you need to make sure the take out loan is in
place or that you can sell for a cash profit.
You might have some good deals here. Consider also the idea of a
partner. Either the present seller or a real investor who has what you
do not have (credit, more cash).
John Corey
More offers than Money - Posted by Pat-SC
Posted by Pat-SC on June 04, 2007 at 18:01:14:
What’s the best way for me to go in order go obtain the additional funds for purchasing & rehab. Here’s the situation.
I have $14000 cash.
strong job history (20+ years to be exact) with part time pay
and weak credit.
I made a cash offer for a 3br & 2 bath Mobile home and land for $8000.00 County Tax Value 17,000.00; The offer was accepted however some issues came up with the title work that the seller is currently working on resolving and have been working on for more than a month. Well in the mean time I made a cash offer of $13000 on a 2 br house house that’s ARV $40k with 5k fix up (A house next door in worse condition about 100 sq ft larger sold as is for 30k. I want to purchase and keep both of them as rentals $450 & 500.
I’ll be closing the house in 20 days.
My question is it better for me to get a HML on the house for purchase & fix up then get a mortgage 6 months to a year later and pay cash for the Mobile and land.
Or
Go to my local banks in the area with a plan for purchasing both with Cross Collateralization loan.
Your INput will be very helpful.