Need funding on this property. - Posted by Thurman

Posted by Thurman on March 14, 1999 at 19:48:14:

Can anybody tell me where I can get the financing needed to fund this deal?

The deal:
This property consist of two identical 1975 mobile homes located on a single lot. They both have two bedrooms, central air conditioning, and one car garage.

This property is a repossession by a local bank.
The original loan balance was $27,000 before forclosure.
The bank has the property listed with a local Realtor and the asking price is $19,500.

The mobile homes needs about $2,000 worth of repairs and new carpet. Also, there is a water bill and maintenance lien of $524 placed by the city hall on the property and two years back real estate taxes of about $800 owed on the property.

Each mobile home will rent for $275 per month or total of $550 per month after needed repair work done.

I believe the fair market value of the property after repair work is $20,000 to $22,000.

Area comps:
Two other properties 2 to 3 blocks away has one mobile home on a single lot each (one is for sale for $16,000 and the other is for sale for $20,000). They both are about 25 years old. I think they are over priced because they have been on the market for over 6 months.

To offer the bank $8,000 cash since they will not finance this property (bank policy). After repair are made, rent them at market rent of $550 per month.

To borrow $12,000 ($8,000 for property, $2,600 for repair and new carpet, $524 for liens, and $800 for back real estate taxes).

I don,t have the cash or the credit to qualify for a conventional loan.

Any Ideas?

Thank you for your consideration and time concerning this deal.