Urgent!! I need help structuring a duplex deal... - Posted by Sean Sullivan

Posted by phil fernandez on June 06, 2000 at 08:06:29:

What’s the duplex worth ? We’ll need to know that. And all of the expenses. Also what do you plan on doing with the property? Keeping it as a rental long term or reselling for a profit?

The $44,000 assumable mortgage is fine if you could talk your seller into taking back a second for the balance. However your seller doesn’t want to hold paper.

A hard money loan wouldn’t work here if you plan on assuming the existing first. The hard money would be in a second position. And the hard money lender will want to be in first position. It is an equity based type of loan.

I would , if you have good credit, get a new mortgage on the duplex. If you are going to live in one side you should be able to get 95% financing. Therefor you will only have to come out of pocket $3,000. You have a rent from one side of $500 and hopefully another $500 for a deposit equaling $1,000 to put toward your downpayment requirement. That leaves you with $2,000. Borrow that from a credit card or sell something. There nothing down deal done. Also have your seller seeing he’s getting all his equity in cash pay your closing costs.

Another plan of attack would be to convince the seller while he doesn’t want to carry a mortgage , maybe he would be willing to hold a second for the balance for only a year. At the end of the year you refinance him out of the deal. You’ll probably need the one year of seasoning before you can refi. Again a nothing down deal.

Use your creativity. It’s not that hard to get into a good deal without using your money.

Urgent!! I need help structuring a duplex deal… - Posted by Sean Sullivan

Posted by Sean Sullivan on June 05, 2000 at 17:25:23:

I have come across what may become my “first CREI deal.” Could anyone please share any suggestions on the best way to structure this with little or no money down.

Here are the specifics.

1980 SF Duplex built in 1970
Owner is asking 70K I think it could be bought for 60K
There is an assumable loan with 44k balance 18 years left @ 10%
Owner doesn’t want to carry back a second for the balance.

I know I can assume the loan with no problem, but I want to figure a way to cover the owners remaning equity with little or nothing down.

The property rents for $500/side. Owner pays water at an average of $54/month.

My thought would be use a hard money lender for the remainder of property price, then refinance into a new more favorable loan. Could I “cash out” some money if I refinance?

Thank you so much in advance for everyones help!!