Newbie Really Needs Help!! - Posted by David
Posted by David on May 25, 1999 at 14:10:32:
I recently went to a Russ Whitney seminar (please no opinions on that) and became very interested in the possibilities of Real Estate
Investing, but have absolutely no experience in the area.
As I said, I only recently learned about REI (last Thursday) and over the weekend I had someone offer me some property for, what
appears to be, a discount.
the property is a 4 bedroom, 2 ba on .2 acres in a middle-class neighborhood of Sierra Vista AZ with a community swimming pool. The
property is in good condition. a small yard with a gold fish pool (probably not important for this forum but I thought I’d mention it).
THe owner is looking to complete a non-realtor deal. A very motivated seller but says he will turn to rental if doesn’t get close to what he is asking.
orginally bought in 1994 for 83000 but part of this was in assuming a 69000 loan.
Refinanced in 1995 at 7.6% for 15yrs. Payments are 728/mo
claims he owes 60000. Wants 78000 - 80000 (or rather wants 20000 after the deal - owes 25000 to his mom).
I don’t know just yet what comparable houses are selling for in his area, however, a 2 bedroom 1ba 2 doors down from him is selling for
Mortage with GMAC. Doesn’t know if the mortgage is assumeable.
- what would be the right way to proceed?
- how do I structure the financing in order to capitalize the most from the deal.
- how do I get title (through a Title company I assume) and other paper work.
- do I need and should I get a lawyer.
- more questions I can’t think of at the present.
I want to purchase for a discount if possible, turn around and resell or rent if my cash flow is adequate.
I have been thinking of assuming his loan of 60000, refinance for 30 yrs at appraised value (neighborhood of 95000). Pay him 15-20000 as downpayment (to meet his asking price of 80000) and pocket the extra 10000(+) or should I ask him to take a 2nd mortgage for the 20000??
Does this make sense??? And how should I approach him and how should I approach a bank.
I realize this looks like “hand holding” and probably is but I am hoping someone here can point me in the right direction.
any opinions or advise would be greatly appreciated.