Hi Willie,
Actually, No, Im a newbie. Im just trying to understand the concept of receiving cash at closing. I actually have some funds to play with and a pretty good credit. However, I prefer to keep the cash at hand in case a good deal requiring cash down comes around.
Have you been doing this long?
Im located in NJ so it seems kinda hard to find a deal like this around. Most houses are between 300k-400k for a decent 3 bedroom 2 bath home.
I actually bought my own house in Edison NJ Jan of 2002 and redid the kitchen with new cabinets and hardwood floor as well as redoing 3 bathrooms. Cost me only 15g. But resold it March 2003 for $356,000.
It was my primary residence and I think I could of gotten more, but we were in a rush to sell cuz we are having a new house constructed and needed the cash for the down payment.
Anyway, I got bitten by the bug. I know for sure there is money in real estate and and currently doing my research and trying to understand the concepts and terms.
Should I take the Real Estate exams and work at a Realtor first before I start my real estate investment?
I am still quite afraid to take the plunge. Its mostly the area Im in. I cant seem to find a bargain.
Id like to buy properties needing fixing up in a good area. Im hoping to bank on the area by fixing up kitchens and bathrooms.
Posted by Calvin Chen on August 11, 2003 at 18:01:09:
Hi,
Im abit conused about the "Cash at closing’ deals…etc
Can someone explain to me how I can get cash at closing?
This is my thoughts on it.
A property is estimated to be $60,000 dollars. The seller is willing to sell it for $30,000. So does this mean if I get a loan for $60,000 dollars, Id be getting $30,000 at closing with a mortgage on the full amount of $60,000?
Lets also say that I resold it for $90,000 dollars.
Would that make my total profit at $60,000 minus any repairs and closing…etc?
Thanks
Calvin
Here are some details of a deal I just completed.
Located, through a real estate agent, a bank repo 3/2 1250 sq. ft ranch style home.
Purchase price 71,000.
Gave the loan officer, different bank, and a list of the improvements I was going to make.
Bank approved appraiser took improvements into consideration and appraised the property after repairs at 97,000.
Bank loaned 77,600.
71,000 to seller
1,000 for closing costs
5,600 cash at closing, left the table with a check for 5,600 to be used for repairs.
So as far as I’m concerned that’s a no money down, cash at closing deal.