Posted by Brent_IL on September 23, 2003 at 08:15:51:
$67,000 to $100,000 is a wide range. See if your REALTOR® can narrow it down.
Need Creative Down Payment Advice - Posted by mary e.
Posted by mary e. on September 21, 2003 at 23:43:53:
Owner is Financing 3/2 house 65,000 and 3000 down. I cannot borrow any small loans because I have been unemployed since june 12 and I have borrowed and used funds to maintain living. So I have attented several real estate seminars in the pass and I have motivated by self to submit 10 offers this week I have even contacted several hard money leaders in hope that they will fund the other offers I made. I need to flip the above mentioned house to a investor or a tenant. The owner wants 650. per month so he said I could pay 750 per month to payout the 2000, but he needed 1000. now to close the deal.
Re: Need Creative Down Payment Advice - Posted by Randy
Posted by Randy on September 22, 2003 at 08:53:29:
I have a source that will loan down payments at 10% for thirty day?s email me if you wish (No advertising Policy). The other option is if the seller holds you?re down pmt till closing. You advertise the property line up your tenant buyer who pay?s you L/O consideration, security deposit or assignment fee at close? Depending on your strategy are you doing this as a rental, land contract with a wrap, L/O or flip for cash profit? What is the market value? What is you exit strategy?
Re: Need Creative Down Payment Advice - Posted by Brent_IL
Posted by Brent_IL on September 22, 2003 at 24:50:19:
The obvious solution is to use your buyer’s down payment to you as a source of money to pay the seller. What’s going through my mind is that if I used 40% as a vacancy and monthly expense allowance, the new buyer would have to rent the house at $1,250 a month to break even. That?s about 1.92% of market value. A credit-challenged individual could pay almost 14% on a 30-year loan and still finance 100% of the sale.
Sans special circumstances, the investor to whom you flip would have to be an investor in name only. Based on your info, I don?t think it will be an easy flip.
Re: Need Creative Down Payment Advice - Posted by mary
Posted by mary on September 22, 2003 at 17:50:15:
I’m using the property as a rental. I just looked at the assessment record in the county and the house is assessed at 45,000. The seller is doing the repairs so that’s why he is asking so much. I plan to advertise for a renter before I sign a contract. So far we have only discussed a verbal contract. I haven’t signed anything. The property is located in a mixed assessed neighborhood. Now that I know the true value before repairs what do you think I should do, the area is great for renting. I want to make 2000-3000 upfront.
Re: Need Creative Down Payment Advice - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on September 22, 2003 at 21:07:04:
Mary---------------
How do you know the “…the true value before repairs… ?” In most places the assessor’s value is NOT to be relied on. Have you verified the value of this property in some other way? If not, you are buying blind. I’d recommend that you drop this property and not buy anything until you know the market values where you are.
How to do that? Bill Green, in his “Think Like a Tycoon” book recommended looking at 100 houses which are for sale and then follow up to see for what they sold. After that point, you will know market values.
Good Investing*************Ron Starr**************
Re: Need Creative Down Payment Advice - Posted by Mary e
Posted by Mary e on September 23, 2003 at 24:03:31:
Thanks for the advice Ron I checked with a realtor and she said the houses in the area are selling for 67,000 to 100,000.
Re: Need Creative Down Payment Advice - Posted by Brenda Whittaker
Posted by Brenda Whittaker on September 24, 2003 at 03:15:18:
You might be surprised how much Realtor’s don’t know sometimes - not all, some are very knowlegable - but you need to do your own comps. - sold properties just like this one, in the same area, same size, same same same. Sold comps, not asking prices. Take into consideration your fix up cost, after you get some solid opinions from professional carpet installers or painters or landscapers or whatever. Just be careful about taking the advice of only one Realtor, one person.
Re: Need Creative Down Payment Advice - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on September 23, 2003 at 10:44:39:
Mary E------------------
I concur entirely with Brent(IL). That is way too wide of a range to use in judging the value of this property.
I think that Jeremy gives you good advice.
You are not ready to buy anything yet, in my view. You need to know the market values before you buy.
Good Investing***Ron Starr
Re: Need Creative Down Payment Advice - Posted by Jeremy
Posted by Jeremy on September 23, 2003 at 08:39:50:
Pull comps on houses close to the same age and area with same number bed/bath see what they sold for then go look at them and see how similar they are. It will give you alot more to work with.