Yet another newbie seeking the voice of experience - Posted by BRoss (TN)
Posted by BRoss (TN) on March 23, 2000 at 22:55:53:
I am looking to purchase 2-3 houses in the next 3 months (one for a personal residence) and have come across a FSBO down the road from where I rent. It is an interesting situation but I will try to keep it to just the numbers.
FMV=90-93k (rural but desirable area, comps are nearly non-existant)
1st Mortgage=59k 10.5% & $543 pymt
2nd Mortgage=13k 8.5% & $192 pymt
3rd Mortgage=8k 8%, no pymt, balloon on sale(same family member who holds 2nd)
taxes are behind $463
The family member who holds the 2nd and 3rd may consider taking back a note or financing. For financing he wants 20% down with a 5yr balloon though. I can qualify for an 80% bank loan with 1 pt and 8.125%. So I don’t see much advantage in him financing it. The loan does not allow a second if the total notes are over 80% of sales price.
I am restricted on my bank loan choices due to requiring no income varification (sp?) because I changed to a partner with commisions rather than salary 1st of the year.
I am considering offering 85k with 2500 closing cost credit.
This may sound odd but I don’t like the idea of just doing this the “normal” way. It is in the area that my wife would like to be in so I would like to purchase the house, but I am looking for some way to minimize my down payment or monthly payments. I can afford both but that doesn’t mean I want to! I would have up to 2-3 months before change of possession if I decided to turn it into a L/O or wrap. It does not need any repairs and very little cosmetics so it is not a rehab type property to flip either.
I am open to any suggestions you might have to “sweeten” this deal any and thank you in advance for reading this whole note!