What should I do? (long) - Posted by Mike Carroll
Posted by Mike Carroll on February 15, 2000 at 18:45:40:
Hello everyone, I have recently finished the Carleton Sheets course and I have just started to make calls and gather information from ads in the local paper. The CS course is my only experience or knowledge in real estate- so if I say something wrong or stupid please correct me.)
Problem 1: I live in Athens, GA and it has a population of about 100,000 - 35,000 of which is student population (including myself) from the Univ of Georgia. Because of this there is a very good rent market. However, in the local paper there is only about 15-20 ads total for real estate sales… only which 2 or 3 are sellers who would even consider creative financing options (L/O, owner financing). Because the market for condos and SFH is so good, most sellers want almost all cash - I have very little income (all my income is Nat’l Guard and leftover student loans) and I have poor credit (what a surprise for a college student). All the properties for sale seem to be through the real estate magazines through the million real estate brokers here in town.
Problem 2: Despite all this, I have called the few ads that have sounded slightly promising. This one in particular is one I would like some suggestions on :
The ad read: ATTRACTIVE HOME
shaded lot, Comer (town 10 min from Athens)
workshop in back. Exc cond
reduced to 72,000
I thought it might be promising because of the ‘reduced’ part in the ad. When I talked to the lady about the property, she said that the area rented very well, and also had people calling her about renting it. She owns the house free and clear and said she would consider a Lease Option for a short period but would much prefer me to get a mortgage to just pay her. She needs $2000 at close to help pay another house she has just bought. Since I have bad credit and very little income, I figured it was not possible to get a mortgage to finance it myself. She is asking 72,000 which is below market value (I could be wrong). What other options could I give her? I’m pretty sure any rent from tenants would support about $80,000 worth of financing. She also said that the taxes were $480 a month and was city and county combined. Any suggestions on how I could make this work with my situation and still make it appealing to her would be greatly appreciated.
Problem 3: In Athens, there are tons of Condos. Several are for sale in the local paper and through brokerages. Most of these people want all cash because they are highly prized possessions in this renters town. Am I just out of luck? Most won’t consider lease optioning for more than 6 months and like I said above, my credit is bad and I have no money. If I absolutely had to, I could get a $1000 from a credit card as a cash advance but this is very costly. What could I offer to these people that will make me ( and them) a deal?
Thanks so very much to anyone who replies (or even reads) this whole mess of a post.