Posted by Stacy (AZ) on June 12, 2001 at 13:42:32:
I stated there’s $35K in equity. There is if you sell on L/O or owner finance, by increasing the sales price by $10K. Obviously, there’s only $25K otherwise.
Stacy
Another possible first deal… - Posted by Valerie
Posted by Valerie on June 12, 2001 at 12:08:02:
Like I see on the board all the time…“You never know until you ask.” Well, I’m asking. Can anyone help me out?
I have a property (single family-4/2) that the seller wants $85,000 because he already moved (to the pocono mountains) and needs CASH. Wants settlement immediately and I should be going to look at the property tonight or tomorrow. Comps are selling for $110k within 1/2 mile. (Property is completely redone already-so he says) Problem is, hard as I have been trying and the hundreds of e-mails and phone calls, I have not been able to make contact with any local investors yet. I am nervous to make an offer then not be able to finance.
Am I suffering from analysis paralysis? I own my home and my credit is OK, (husband was out of work in January and we are still recovering from this). I just can’t seem to make local contacts. I speak with a lot of realtors but they are not giving out any usable info and one investor I did manage to make a contact with won’t tell me any names of his lenders (he works for a mortgage company too) I guess he wants a cut from any of my profit which I wouldn’t mind BUT I don’t want to deal with a middle-man for this deal. I AM going to an investment group meeting on the 28th which should be a pretty big contact maker, but this deal should go down by the end of the week, not the end of the month.
Any info would be appreciated.
Re: Another possible first deal… - Posted by Carey_PA
Posted by Carey_PA on June 12, 2001 at 19:42:51:
Valerie,
If your credit is good, you make just want to visit a local bank in your area and speak to someone in the commercial lending department. They may be able to help you out. Their rates will be a whole lot lower than a hard money lender too!!!
Good luck,
CAREY
p.s. Do as Sue suggested and join the DIG classified and Digonline question thing, you may find some local investors in your area!!
L/O? - Posted by Ed Reilly
Posted by Ed Reilly on June 12, 2001 at 17:31:12:
I think if he has already moved, then he doesn’t need any cash. Relief on the payments is what he needs. How bout a lease/option?? He doesn’t have to worry about paying 2 mortgages, you don’t need cash from an investor. If he insists on some cash, you can cover with the cosideration you get from your tenant/buyer. Seems like a good way to me, though, as always, I am open to differing opinions. Anyway, let us know how it turns out.
Ed.
Re: Another possible first deal… - Posted by SueC
Posted by SueC on June 12, 2001 at 14:04:02:
Valerie, I can only assume you’re talking about DIG, since the next meeting is the 28th - go to the DIG website, www.digonline.org, click on the link to Corporate Sponsors, there are lenders there, try Jim Bennett at Stonehedge he comes highly recommended. I don’t know what area you’re in in SE PA, but email me off list, I can direct you to others not on the DIG list who are less expensive.
You can also join the DIG email lists, you don’t have to be a member, scroll to the bottom of the web page and sign up, then you can ask away from local investors who can help.
Good luck!
Sue Caskey
Re: Another possible first deal… - Posted by Stacy (AZ)
Posted by Stacy (AZ) on June 12, 2001 at 13:08:10:
Hi Valerie-
You are speaking of “local investors” in your post. Are you pursuing private lenders? I guess my question would be, are you also looking for hard money lenders? You could possibly buy this property using hard money. If you need to find a hard money lender, call the head of the investor’s group you’ll be meeting on the 28th. I’m sure he or she will give you some names and numbers.
About your deal: EVERY seller says they “want” to be cashed out quickly. That doesn’t mean it’s going to happen. Find out how much cash he absolutely “MUST” have. This deal shouts “split funding” to me. Could he settle for half now, half later? With hard money, you could get up to 65%, or $71,500 immediately, but offer him just half now ($45,000 cash, or less if you can) in ten days, if he’ll carry a second mortgage for the remainder. This is only a starting point for negotiations. Suppose he says he needs $55K now, but would carry the remainder. You still have a deal using hard money. My point is, with $35K equity in the balance, you have some room to play. Find that HM lender and negotiate.
Stacy