Need help on first deal - Posted by Ed

Posted by Bud Branstetter on June 06, 1999 at 12:04:56:

With the seller willing to take back a big second you should be able to get a 1st lien loan. Do a contract for deed on your existing home and most lenders will not count it against your ratios. If other things are askew you could even do a private note deal to raise the money. Note buyers are more interested in the ITV than your ratios and how much cash you have into it.

Need help on first deal - Posted by Ed

Posted by Ed on June 04, 1999 at 11:59:51:

We are looking at a 4500sf victorian in a small town near
where we live. We are trying to buy it as a permanent residence. It appraised two years ago for $120,000 (low due
to cosmetics - it is structurally sound but has not been lived in since 1990. Was rewired and replumbed about 1992.
Big 1 acre, treed lot in the historic district.
The owner wants $110,000 and will take a second for $85000
for 15 years at 7.5%
I’m trying to put together $35000 ( $25000 for the downpayment and $10,000 for repairs)
The house after cosmetics should appraise for around
My problem is I am buried in my existing residence.
The only thing I can see to do is rent it until I can work out a way to sell it (probably a L/O ).
This would be after I can work a collateral substitution for my existing second at a point in the future when I can do a long term loan on the victorian.
Does this make sense? Would I be better off trying to get a
hard money loan and if so where?

Help would be appreciated.