Posted by Todd (MO) on March 16, 2001 at 23:41:23:
Hey John!
It’s late my brain is fried…I misread you to say that you were going to offer owner financing instead of owner assisted financing. These types of deals are not only possible, but are done often. Check with your mortgage friend about title seasoning issues with his financing sources. Also, you will need to work it into your offer or otherwise work out with the seller to allow you to show the property to prospective buyers. They will want to see what they’re buying. Can’t think of anything else off hand without knowing more…besides, it’s too late to think very hard.
I’m pretty new to REI and am reading Bronchicks cash cow now; however I have some questions about a possible retail flip.
I have a property that a woman called me about that i would like to flip. When I spoke with her i’ve found that I can probable put it under contract between $15,000 and $20,000. It has a $1500 sewer lean against it somehow from the previous owner. This home is in a lower end neighborhood and has comps of $35,000 and $40,000. She rehabbed the thing and was going to rent it but she needs her money back now for some personal problems. My plan would be to put it under contract then advertise the property with owner assisted financing for $35,000 with 5% down. I could take a second back if I need to to get them approved with my friend who is a mortgage broker. Is this possible to do a simutaneous closing like this and walk with a check at the closing table without ever putting out money. If it is or isn’t please explain how and why. Any suggestions would be greatly appreciated.
Thanks
John
Re: Need suggestions on Flip (long) - Posted by Todd (MO)
Posted by Todd (MO) on March 16, 2001 at 22:16:00:
John,
A couple of questions about this. I presume you are intending to do a wrap on this, selling it with you carrying back the wrap to a new buyer with 5% down? I’m having trouble with the math (maybe it’s just me), you said she needed her money out for personal reasons. Where is that money coming from? Are you paying her some cash? And if you are getting 5% down ($1,750), what are you doing about the sewer lien for $1,500? Doesn’t seem there is much of a cash out at closing opportunity - unless I’m just not clear on what you’re intending. Seems like you will have money in the deal?
Re: Need suggestions on Flip (long) - Posted by SHAUN IN STL
Posted by SHAUN IN STL on March 16, 2001 at 21:26:08:
I take it that you are from Saint Louis from your “stl”. I am an investor here in Saint Louis as well and would like to work with you on this deal if you run into a title seasoning issue with your friends mortage company.
Hey Todd, Whats going on? I’m not actually trying to do a wrap. I was going to try to have a mortgage broker I’m friends with get the people financed for me. Another investor I know over here advertises owner assisted financing and gets a large response. All he does is have people look at the property and then he has them get in touch with his mortgage broker. He will take back a second if he needs to. If you could suggest anything better I would like the help.
thanks
John
Hi Shaun, I’m actually in Belleville, IL but I use STL because nobody knows where it is. Let me know what you can do or what suggestions you have. E-mail me off the board and maybe we can talk sometime.