No Money Down Really Works!!! - Posted by Larry(MO)

Posted by Wayne-NC on February 28, 2002 at 14:56:50:

I think you know where I’m going with this. I hope that is not the case here. I tried to do that some years ago but learned otherwise. Maybe the financing board can answer this.

No Money Down Really Works!!! - Posted by Larry(MO)

Posted by Larry(MO) on February 26, 2002 at 22:54:29:

Just wanted to let everyone know about my day.
Just closed on a 4 bedroom 2 bath SFH on 5 acres
with 5 rented MHs on the land.

Orignal asking price was close to 100,000. I saw
an ad that said just reduced. Had a buyer that had fell thru at the bank and wanted to sell quick.

The asking price was 81.500.
The house rents for 400 and the mobils rent for 225,215,210,210 and 200 which adds to 1460.00

I offered 77 and some change and was countered at 81,500
which was the asking price. That was bottom dollar
and was priced to sell.

I then countered with a full price offer with a 10%
seller carryback.

This was agreed to.

We closed today. We took a check into the bank for 8200
and got a conventional 90% loan at 8.5% fixed at 722.00
a month.

After the closing we went to another office and the seller
gave us a cashiers check for 8000 on a 10% note at 165.00
a month.

He then handed us all of the deposits and rents with the rest of the rents being due on the first of march.

Taxes are 385.00 a year and our insurance is 35.25 a month
as the MHs did not end up on the Loan.

This translates to approx 506.00 a month cashflow.

This 6 units takes me to 22 properties but this was a first
where i walked away with money. Not bad for a man who
lived in a 40.00 a week motel room 13 years ago in this very town.

Thanks Ed Garcia for the phone call and all of the great help and advice from all of you Gurus on this website.

To the novice investor. Make offers and then more offers
if you find the deals the money will find you.

Living my dream in missouri God Bless Larry

Re: No Money Down Really Works!!! - Posted by Greg

Posted by Greg on February 27, 2002 at 20:40:41:

Larry, that was a great deal!! One question, how did you wright up the seller carryback, and what is the other office you spoke about. Do you get a promisory note from the buyer for $8000 before the closing, because couldnt the buyer just walk away after the first closing? please let me know how this works.

Re: Question! - Posted by Wayne-NC

Posted by Wayne-NC on February 27, 2002 at 06:32:09:

Was the seller carryback a recorded second on the property and did the lender know of this?

Re: Question! - Posted by Nate(DC)

Posted by Nate(DC) on February 28, 2002 at 12:04:26:

I had the same question when I read it…since they had to go to “another office”, my guess would be no. Maybe Larry can confirm or deny this for us.