Posted by Ed Garcia on December 30, 2000 at 20:51:56:
Bob,
When the smoke clears you’ll be in the deal at least $100,000.That’s between 71 an71% with the values you gave. Your sons going to live in the house while you’re fixing it up so I’m assuming that will take care of debt servicing the loan. The obvious, is to contact the seller and see what’s on their mind. What is the MOTIVATION of the sale? Will they CARRY paper? Is there an existing loan? Is it assumable? What is the balance, rate, payment, and time left on the loan?
We know you have good credit, so it’s a matter of structuring the deal for a specific lender. I’ve got a few ideas for you Bob, but I need these questions answered. If you like you can call me at (909) 944-0199 when you get these questions answered.
I want to wish you and your family a Happy New Year,
Posted by Bob Johnson on December 28, 2000 at 23:51:18:
I’ve found a property that I want to make an offer on, but don’t have enough experience to know what creative options might be applicable.
It’s a 3BR duplex at $95k. Estate sale, heirs want to get all cash out to pay medical bills, etc. In good mechanical shape but needs wallpaper removal/plaster/paint/minor fixup throughout, full redo of kitchen and bathrooms, and all wood floors need redone. Probably $6-8k to bring it up to snuff. Market will support $130-140k resale.
My credit is A-, good job, discretionary income of over $1k/month. Separated, and therefore can’t use equity in my residence to help. Have limited cash for down payment (maybe $2-3k). Want to buy home jointly w/my son, who will live in the property. He has no credit.
Basically, I could work with 80% of future value, and finance the renovation myself. Or, I could try for a rehab loan like a 203k and go for purchase+rehab costs. Any advice would be greatly appreciated. This property just came on the mkt, and I was the first to see it. I’d like to lock it up before some other investor grabs it.