Posted by Dave on March 24, 1999 at 17:06:42:
I can take about $10,000 down. The only problem with the 90%LTV is that the property won’t finance with conventional means. I guess I could still take the 10K down and carry the remaining $80,000 on contract using a wrap. What do you think about my plan of carrying it for 8 years (amortized for 30 yrs.)?
Need Help on Selling 4-plex FAST… - Posted by Dave
Posted by Dave on March 23, 1999 at 20:07:26:
I have a 4-unit income property for sale. The existing loan on the property is through a private investor. It is amortized for 30 years at 10% with a pay-off in ten years. There is about 9 years left. The amount owed is $70,000. The payments with taxes and insurance is about $675. The rental income from the property is $1145. It is fully rented.
The fair market value is around $90,000. The property does need some fixing up (Ext. paint.,new roof; interior updating such as paint, carpet, vinyl, counters, etc.). I’m currently advertising it as follows : 20% Return! $20,000 down. 4-unit income property, fully rented. No Qualifying!
The return on investment would be around 20% for 8 years because of being amortized for 30 years. I’m planning on doing a wrap on the property ($70,000 amortized 30 yrs. at 10% with pay-off in 8 yrs.). If the note wasn’t paid in 8 yrs. there would be approx. 1 yr. to foreclose and re-sell. I’ve had a lot of calls but no takers. I think the exterior shape of the property is the main problem. I don’t have time to do fix-up. I need to raise cash now. I need some ideas on selling. I appreciate any response. Thank You…
Re: Need Help on Selling 4-plex FAST… - Posted by Reif
Posted by Reif on March 24, 1999 at 16:19:53:
If you need the cash, selling to a Owner Occupant for full price/new loan may be the best wayto go.
If you need the 20K before one or two months, that’s tougher.
If you don’t mind saying, tell us what you need the cash for, maybe we can help on that end.
Reif
Re: Need Help on Selling 4-plex FAST… - Posted by mike
Posted by mike on March 24, 1999 at 09:11:39:
go read the chapter on subordination and then the one on substitution of collateral. fix it and keep it…
Re: Need Help on Selling 4-plex FAST… - Posted by Andrew Graham
Posted by Andrew Graham on March 23, 1999 at 20:43:23:
What kind of advertising have you done, have you tried your local real estate investment group, what exactly have you done so far??
Re: Need Help on Selling 4-plex FAST… - Posted by Dave
Posted by Dave on March 24, 1999 at 16:41:59:
I forgot to mention that the 4-plex is older and has some foundation problems. It won’t finance with conventional means. As for the $20,000 down that I am asking, I don’t need the whole thing right now. I do need about $10,000 of it to pay some bills. I have thought about taking $10,000 of it on a note or maybe in trade. What do you think? Thanks, Dave
Re: Need Help on Selling 4-plex FAST… - Posted by Dave
Posted by Dave on March 23, 1999 at 20:56:41:
So far, all I have done is advertise in the local paper.
I thought that because of the No Qualifying part of the transaction that I would have many interested parties. In my area, finding property with No Qualifying is fairly difficult. Maybe, I should try some different avenues for selling. Thanks for your response.
Re: Need Help on Selling 4-plex FAST… - Posted by Reif
Posted by Reif on March 24, 1999 at 21:22:36:
OK, ten is way better than twenty, because if you take ten you are more competiive than the 90% Owner occupied folks.
On 90K, 10% down is 9K plus they need another 4K in closing costs that you won’t have.
I’d lower my sights and go for 10K down and wrap the rest.
Of course, I’m a new guy, so take that for what it’s worth.
Good Luck,
Reif
Re: Need Help on Selling 4-plex FAST… - Posted by Mark (SDCA)
Posted by Mark (SDCA) on March 24, 1999 at 10:24:45:
20K down is 22% on a FMV of 90K. 4-plexes qualify for residential (90% NOO) financing. I wouldn’t be interested in that deal. Can you take less down? It kind of sounds like not.