With a 50k balance refinancing should be a slam dunk, good or bad credit. If you want to have them deed your the property and pull cash out are you going to make the payments for them? I mean you would n’t want to put your folks in jeopardy of losing their house. do you have a plan on how to reinvest the money. For instance I’m borrowing about 30k against some of my equity, the 30k I’m going to pump into MH’s and create more subject to deals, to enhance my cash flow and create more equities. But, in the interim I have enough cash flow to cover the payments in the event something went wrong, and the money is secured.
You might repost your question again up top, give it a different title to get a more response.
Im a newbe realestate investor and I need some objective advise from some of you seasoned people.
I have a sfh with about 20k eqty . I want to enhance my buying power with this fllowing possibility :
My parents have a condo worth 120k . They have 70k eqty in it . they have a private mortgage with two older ladys for 50k at10% in this property that has been active for 10 years . they have little eqty in this mort and it is due aug of this year . They do not have good credit to refinance and they do not want to move into a rental situation at there ages. One parent is retired the other works part time . Total income with ss is around 28k a year . They where talking about a reverse mortg . I would like for them to quick deed the condo to me let me finance at a lower interest and take the eqty to use as a tool in my ventures . They would pay me a lower monthly pymt and I would strive to payoff the mortg as soon as I could . what are the tax implications ? Do I have a good chance in lowering the payoff with the private lenders?
and in general is this a good aproach to a solution that would help the both of us out for the future ?
I would love to here some feed back . Kkimmer@aol.com