Posted by Ed Garcia on February 27, 2001 at 09:49:58:
Batpro,
What’s there to talk about? If you could buy this deal as you’ve suggested, this deal speaks for it’s self and I love the fact that it’s surrounded by commercial, which gives me the impression of even more upside or increased value.
Batpro, you’re credit is excellent and you could more than likely finance this deal at 90% LTV. I would go to a BANK and get a small equity line of credit on your house for the down payment. That way you can refinance this deal a year form now and get all of your money back, leaving you with a 100% financing and no PMI insurance, and either take the cash and pay off your credit line or buy another property.
Posted by batpro on February 26, 2001 at 18:16:44:
There has been a 3 bedroom house for sale for 1 year in my town in Northern Minnesota. House is in good condition but is being sold as is. It was listed with a realtor for $67,000 for most of the year. The owner (lady) is old and moved to Arizonia. She is now very motivated and recently dropped the price about 1 month ago to $48,000. The realtor told me that there is currently a renter in there on a month to month basis. He also told me that the lady is very motivated (even states this in the MLS book) and will look at any offers. The realtor said no offers to date have been made on the property. He also thought that she did not have a mortgage on it.
This house is also zoned commercial and sits behind a dentist office off of a main street. The realtor said that is why he figures it hasn’t had any offers because people don’t want to be that close to main street.
I was thinking of making an offer for around $32,000 with conventional financing and with seller paid closing costs of closing costs of $2000. However, I doubt this is the best methodology.
I read about lease purchase, wrap mortgage, seller carry backs, CD’s, etc. It is all very confusing. I don’t know what the best option is??? Please advise!
My situation:
own home with $42,000 loan - my home appraises at $70,000
credit score 786
monthly debt $700
yearly income $34,000
Currently have another accepted offer on a house for around $35,000 (not sure what is the best way to finance this one).
I am open to making some quick cash or monthly cash flow.
Up here in northern minnesota lease purchases are unheard of but CD’s are common.
Adam
Please give advice on what to do. The property should appraise around $60,000.