Re: Need an expert to assit with my problem - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on January 23, 2002 at 20:01:08:
The only way you will find out what you can do is to try. Talk to some local real estate brokers and real estate mortgage brokers and ask them what they think.
Now, for people in your situation, usually it is better to not go through real estate brokers and institutional lenders to buy a home. It is usually better to work what some people call “creative financing.” Mostly this means having the sellers loan you part or all of the purchase price. Or taking over the existing loan on a property rather than paying it off.
There is a cost to you of this. You must learn some techniques and approaches. You will have to search out potential sellers. You will have to negotiate a deal and then carry through to make the property yours. You will probably not have a real estate agent to help you. But, there is a savings of maybe $8K or so which does not have to go to the real estate broker’s commission. It might take you a few months of work to learn about real estate and another few months to actually purchase the property.
If you really want to get married and start living together before you can buy a property, you may have to find a suitable house to rent. This could be ok, since the price of renting might not be more than the cost of ownership. You might find a house that you can do a “lease/option” whereby you rent for a while and then obtain ownership a little later on.
Once you own a home, you may be able to rent out your condo for enough to cover all your costs, including maintenance, hoa fees, and a vacancy factor. This will not make you rich soon, but held for many years, it can be a good investment. You could sell it, if you want. If you have lived in it for 2 of the last 5 years, you can sell with no federal capital gains taxes on any profit you take in. However, there is very little equity in the property and selling it through a real estate broker will eat up a good deal of it.
Meanwhile, start tightening up on your budget. The “crazy debt” you have did not come floating down from heaven. You spent more than you had in cash. If you want to get a house, YOU will have to do what it takes to get one. None of us are going to do it for you. All we can offer is encouragement and a little guidance to avoid pitfalls. “IF it is to be, It is up to M E !”
Good House-Hunting**Ron Starr