Would This work? - Posted by Ted

Real Estate Investing
1

Posted by Jon Richards on March 23, 2001 at 11:28:26:

Actually, I’m not sure. Except I guess it won’t hurt. No guarantees.

Jon Richards
NoteWorthy Publisher

2

Would This work? - Posted by Ted

Posted by Ted on March 21, 2001 at 19:51:15:

I found a home that is need of paint, drywall work and carpeting.

I buy for $75,000.

Do the work and sell for $85,000 with $5,000 of that financed by me.

After I get the $80,000 I pay off my $75,000 and pocket $5,000. I also get $5,000 plus interest over the next 5 to 7 years.

I’ve heard I’ll have a problem doing this because the two purchases happened within 6 months.

Thanks in Advance

3

Re: Would This work? - Posted by Jon Richards

Posted by Jon Richards on March 21, 2001 at 21:40:42:

Sound like a winner to me. Never heard of a problem of too many purchases. If the equity is there, you should do 5 a month!

Threre is a problem, if you are inflating the prices of the homes, however. Be careful and add “real” value.
Jon Richards
NoteWorthy Publisher

4

Re: Would This work? - Posted by Ted

Posted by Ted on March 23, 2001 at 08:09:49:

Here is an example I’m looking at:

$100,000 home that is easily $7,000 below the average similar house in the area.

Needs a little drywall work, painting and landscapping. (maybe new carpet would help sell also) Through conversations I’ve had with the owners they will probably go down a couple thousand more but not much more.
I want to buy the home for lets say $97,000 do the work myself and sell for $107,000 with about $6,000 in my own financing for cash flow. That would put roughly $3,000 in my pocket after putting about $1,000 worth of my own improvements into the home.

Will that $6,000 that I will owner finance help the future buyer in getting a loan? And will it bring more interest because of “some owner financing” being listed in my ad I place in the paper? (I want to make improvements over a 3 day period and sell within 3 weeks.

Any help greatly appreciated