All on No Money Down (Well, maybe a little for closing costs).
Do you need another 5-10%? No.
His downpayment offer is all you need in the deal.
Don’t worry so much about terms just yet. Even with lousy terms, you still have great cash flow.
You need earnest consideration in the deal. This could be a promissory note if the owner will take it, or if you have to come out hard, I wouldn’t go more than about $100.
How long does that give you? However long you set the escrow date for. If the seller will go for a 90 day close, then take it. That will give you 90 days to line up financing. With good credit it shouldn’t take long to get a 90% loan.
Hi,
Three unit apt. building for $55-60k. Fully rented now and rents total $1050/mo. Owner is willing to finance 10-15% for down payment. However, he would want to raise the price some to do that. I don’t have any cash to put down but do have excellent credit and approx. $5k equity in my home. Questions: Does this sound like a good deal? If I use his offer won’t I need another 5-10% to equal 20% and get a loan? Should I use his downpayment offer AND my equity together, or is that even possible? I need to use this property as income so I need to get it on the best terms possible. From what I’ve been able to figure it should cash flow pretty well. I’m meeting with the owner next Wednesday, if we can agree on a price do I need to give him earnest $ until I line up financing? If I do that, how much should I give him and how long does that give me to put it together? I’m trying to get the financing now but want to get opinions from here to make sure I’m going about it in the right way. Thanks for the great (but limited obviously :O) ) education so far and thanks in advance for helping me with this.