Posted by michaela-CA on July 25, 2007 at 09:59:02:
You’re right! and add to that:
…and always think, that hardworking people owe them.’
structuring a purchase? - getting my money back ? - Posted by GIO
Posted by GIO on September 04, 2001 at 08:26:35:
how can I structure this purchase ? How do I make sure I get my money back if the sellers attorney says he doesnt want to know about the 2nd mortg since he claims he is req’d to disclose the 2nd mortg. to the bank. If the bank becomes aware of the 2nd mortg. then the bank will decline approving the first mortg.
Seller wants $350 k total
willing to hold $20 k 2nd mortg. at 5% 30 yr amortization 7 yr balloon but making pymts on the interest only.
Thus net at closing is $330k to the seller
Seller is willing to state on contract a sales price that is greater in order that I get back my down pymt and my closing costs, to go in as $0 down payment purchase. This is how I see it but, Am I Correct ?
$350.0 k actual purchase price
$17.5 k closing costs
$367.5 k contract price
if my dn pymt is 5% = $17.5k
and my cl. costs is 5% = $17.5k
total = $35.0k
seller gets ($367-$17.5) $350k at closing from the bank, but seller will have to return the $20k so his net is $330k.
My question again is how do I get the seller to give me back my initial down pymt that the sellers attorney is holding ? How do I get the seller to give me back to the $20k at closing from the first mortgage. ?
FMV = $350k
What is your opinion on this transaction ? Any good Ideas I should consider ?
thank you
Re: structuring a purchase? - Posted by dewCO
Posted by dewCO on September 04, 2001 at 12:39:47:
Why are you thinking about doing a deal at FMV for the purchase price? Don’t see the up side without waiting for a long time for appreciation.
I say NO !!! - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on September 04, 2001 at 09:21:07:
Plain and simple loan fraud here.
Stay out of this deal or find another way to do it. Maybe a lease/option or subject to.
If there is something in your closing that you can’t disclose to the lender without losing the deal, then walk away. Penalties can be stiff, including jail time.
Just my .02
Re: - Posted by Carey_PA
Posted by Carey_PA on September 04, 2001 at 09:06:00:
I had a seller once that told me they’d have 1 sales price on the contract, but the real sales price between us would be LESS, that way I could get in without any of my own money…guess how the deal turned out?
IT DIDN’T!! I told him no thanks!! Don’t get caught up in something that you’re gonna wish you never got into!
CAREY
structuring a purchase? - getting my money back ? - Posted by JohnBoy
Posted by JohnBoy on September 04, 2001 at 08:35:28:
It looks to me like what you’re talking about doing here is LOAN FRAUD! Any time you have to hide anything from the lender then you are committing loan fraud. Everything must be disclosed.
Re: structuring a purchase? - Posted by GIO
Posted by GIO on September 04, 2001 at 23:20:22:
hi,
besides that I might be able to purchase it without any money down if possible(biggest advantage)the house is large and very nice. 3 apts easy to rent, but I might choose to live in it.
Re: I say NO !!! - Posted by GIO
Posted by GIO on September 04, 2001 at 12:00:10:
THANKS, please give me an idea on what I should offer the seller in terms of a L/O or a subject to deal, with no out of pocket expense except my monthly pymt.
Re: - Posted by GIO
Posted by GIO on September 04, 2001 at 12:03:53:
THANKS, please give me some ideas on what I should offer the seller with no out of pocket expense from me except my monthly pymt. I had a friend tell me that he had tried a L/O here in NY and he could not find a bank to accept the L/O contract as a down pymt from the buyer.
structuring a purchase? - getting my money back ? - Posted by GIO
Posted by GIO on September 04, 2001 at 12:06:51:
THANKS, please give me some ideas on what I should offer the seller with no out of pocket expense from me except my monthly pymt. I had a friend tell me that he had tried a L/O here in NY and he could not find a bank to accept the L/O contract as a down pymt from the buyer.
Re: Replace Carpet, Paint Floor, or new Hardwood - Posted by RichV(FL)
Posted by RichV(FL) on July 24, 2007 at 16:56:22:
Tye,
Your tenants sound like mine. I have never had one that cleaned the stove when leaving. I have had some that never used the thing. They must live on fast food or something.
RichV(FL)
Re: structuring a purchase? - - Posted by JohnBoy
Posted by JohnBoy on September 04, 2001 at 12:19:06:
For one, the banks don’t accept L/O contracts as down payments. What a bank “might” accept as a down payment is the “option consideration” that was paid by the tenant/buyer.
Rather than running around to a bunch of banks in NY, hook up with a GOOD mortgage broker that has lenders from all over. He/she could place you with a lender that would do the deal.
As far as what to offer, I dunno! You don’t provide us with enough details to try and answer that.
What does the seller owe on the property?
What is the property worth? How do you know that?
Does it need any repairs? If so, what will they cost? How do you know that?
What do other houses like this in the area rent for? How do you know?
What are the payments on the seller’s current loan(s)?
What are the taxes?
Why is the seller selling?
Is the house vacant or are they living in it?
How MOTIVATED is the seller to sell this?
What are your plans for this property if you were to get it?
If you can answer these questions for starters than perhaps we can help in coming up with a solution that might make this work somehow.
Re: Replace Carpet, Paint Floor, or new Hardwood - Posted by Nancy in NC
Posted by Nancy in NC on July 24, 2007 at 20:15:22:
Mine don’t clean anything especially bathtubs and shower walls. I now have a clause if they don’t return the home to the same level of cleanliness as documented on the move-in inspection report they lose the entire security deposit. Upon moving in they also sign a list of 10 cleaning items that must be done upon vacating the property in order to get a full refund. It is amazing how many people will forfeit hundreds of dollars rather than take one day to do a through cleaning.
Lazy people are always broke and think hardworking people are lucky.
Re: structuring a purchase? - - Posted by GIO
Posted by GIO on September 04, 2001 at 23:34:10:
What does the seller owe on the property?
very little per the seller, about $30k
What is the property worth? How do you know that?
FMV=$350k-$360k, comps
Does it need any repairs? If so, what will they cost? How do you know that?
very little repairs. Visual Inspection/rehabber experience
What do other houses like this in the area rent for? How do you know?
3 apts- possible total rent = $3300/mo, experience
What are the payments on the seller’s current loan(s)?
dont know / owes aprox $30k-1st mortg.
What are the taxes?
$4000/yr
Why is the seller selling? house is being rented to fam. and seller wants to reinvest the money and his tenants/family to go on their own.
Is the house vacant or are they living in it?
How MOTIVATED is the seller to sell this?
only slightly.
What are your plans for this property if you were to get it?
most likely to live in it.
If you can answer these questions for starters than perhaps we can help in coming up with a solution that might make this work somehow.
Now that’s a good quote! - Posted by Natalie-VA
Posted by Natalie-VA on July 25, 2007 at 06:02:06:
“Lazy people are always broke and think hardworking people are lucky.”
Re: structuring a purchase? - - Posted by JohnBoy
Posted by JohnBoy on September 05, 2001 at 09:38:30:
So why would you be willing to pay market value on this?
If you plan on living in the property and have good credit then you could probably get 100% financing. If not 100% financing then at least 80% - 95% financing with a seller carry back for the difference.
I would be offering around $260k for something like this allowing room to come up to $275k. That would be the most I would be willing to pay if I were going to put a loan in my name.
That’s mean I would either be able to get 100% financing for $275k or 90% financing of $247,500 with the seller carrying back a second for the difference of $27,500.
The only way I would pay more is with all seller financing at a favorable rate that would allow me to create a nice cash flow off this.
If the seller isn’t willing to deal on this then they aren’t motivated enough. Find a seller that is MOTIVATED!
$350k properties are much harder to move and getting them at good discounts is common. In this case they only owe $30k, so they have lots of room to come down on this. If they’re not motivated enough yet then wait until they become motivated enough. If the economy dumps like it appears it’s going to the value on this will come way down in the near future. You don’t want to be the one that gets stuck with a $350k property that drops in value substantially if the economy does take a dump in the near future. Then you are going to be the one who ends up being upside down on this thing.
Remember, their price, YOUR TERMS! Otherwise YOUR PRICE if they won’t give your terms.