I’m new to real-estate so don’t take my word on any of this but here is my 2-cents.
First, most of the experienced investors here are probably going to say that it’s not enough of a discount for their time. If you got it at $119K and then put a few thousand putting into it, you may only be left with $5 - 10K. I’m sure you’ll get remarks that say it isn’t worth your time, but if you’re willing to do it for a few grand of profit and some valuable experience, then I say go for it.
Second, ask your local bank about financing. The worst they can say is “no”. It never hurts to ask.
Any deal in this?-newbie questions - Posted by Barry (GA)
Posted by Barry (GA) on April 03, 2003 at 14:48:15:
A friend told me about a house he looked at but is not interested in. The FMV is $135k and the house is in a fairly new and popular subdivision. The house has been listed quite a while but has not sold. He said that he looked at the house and can see why it hasn’t sold. The first room that you come in to, the living room, is an awful shade of green. He stressed that it is really awful. He also said that the m/b is an unappealing dark burgundy and one of the other bedrooms is a bright yellow. He said that a couple of rooms could also use some new carpet. He was thinking that the house might could be picked up for around $119k in as is condition. He said though that the owners work for the Federal govt. and are being transferred and may not be willing to deal-the reason is that if the house does not sell soon the Feds will take over the house, and supposedly give them FMV and then the Feds will put it up for sale through another realtor for (supposedly) whatever they can get for it. He said that it might be possible to get it for $105-110k if it goes that far?
Has anyone ever bought a house from the Fed in this type situation? Will they let it go for less?
My father-in-law is a painting contractor and can get me the paint at wholesale, my wife has worked with him and is a great painter, so that is no problem. Also, her uncle sells and installs carpet. Might it be possible to get this place, do some fixing up, and make something off of it?
The biggest question I have is how do you get the financing for a house like this? it would not be for my permanent residence and I’d want to resell it quickly. I do not think the local bank would want to finance something like this.
Re: Any deal in this?-newbie questions - Posted by Jack Kurtz
Posted by Jack Kurtz on April 03, 2003 at 16:31:17:
How much is the existing loan on the property? If the balance of the loan is high, offer to purchase the property subject-to the existing financing and just give them a little bit of cash at closing. If the balance of the loan is low, see if they will carryback most of the equity in a note and give them a little bit of cash at closing.