G,
Maybe you could ask to apply for the FHA, let them come back and tell you no. Even though I am new at this, from what I’ve read, when negotiating you go ahead and ask for everything you can think of, ie: all the window coverings, all the special lighting fixtures, all the lawn furniture, the lawn mower, the barbeque grill, all the appliances, etc. etc. Then they will come back and tell you no, but they may say yes to some things that may surprise you. I guess what I am saying is, if you don’t ask for anything, you won’t get anything. Also, maybe another mortgage co. will let you ask for more than 3% from the seller, ask around, find out if there is a law in your area. Also make sure before you spend alot of $$ on rehabbing, the school system in the neighborhood is good, the area is desirable to live in, and you would be able to rent it. I forgot whether you said you have a tenant or not. Good luck!! Pam
I am an absolute beginner in Real Estate and in the process of putting together my first deal on a duplex which will be my first property and primary residence.
I am financing 95% of the property with a conventional mortgage. I am worried however that I won’t have enough cash to actually close the deal, once all expenses are factored in. Actually, I’m worried about coming up with all the down payment.
There is a tenant in one unit that wants to stay. He is on a month-to-month agreement paying $600 monthly. The seller of the duplex owns is out right (owned it for 16 years).
The property has been on the market for 6 months. He’s had 2 offers fall through already for financing reasons. He told me he is selling because he has depreciated all he could out of the property and is moving on to other investments. Apparently an eager seller.
I know that I can ask for certain things at closing.
What can I ask for at closing? What can I have the seller pay for? Basically, how can I take this property off his hands without spending all my savings, borrowing money, and cashing in my 401k?
I have never bought a house before and really don’t know what to expect. My buyers agent is of little help. Can anyone do a little bit of handholding and help this newbie out?
Re: Buying Duplex, need $ for closing! How? - Posted by Jose Mares
Posted by Jose Mares on July 25, 2001 at 17:58:30:
This is all GREAT info. Going on the same track, I am also looking to start investing into my first Duplex or 4 unit. Can the seller concession be used multiple time for multiple properties or just once. What are the tax ramifications for getting money from closing.
If two previous deals have already… - Posted by SusanL.–FL
Posted by SusanL.–FL on July 25, 2001 at 15:17:30:
…fallen through, you are in the cat-bird seat right now. Don’t let him rush you (having to counter BY tomorrow) IF your ducks aren’t all in a row. Hurrying causes mistakes.
One idea, off the top of my head—counter with seller to carry back 25% of the mortgage (at 0% interest?)then you’d only have to come up with 75% of the financing. You can also ask him to kick in a percentage of the closing costs. (3%?)
The renters deposit$ can be moved over to ‘your side of the table’. That is also money you can use.
If seller owns any of the appliances on the property (dishwasher/washer-dryer, etc.), be sure to ask for them in your contract.
Also write the contract so that your first payment to the seller (IF he carries a second) isn’t due till 45 days after closing.
Personally speaking, though, I would find other ways besides financing 95% through a conventional…but then–that’s how many of us started out. Gotta begin some where…
Good luck with this one (and screen your tenants CAREFULLY) after you close.
If you have never bought property, you can get an FHA loan, pay 3% down. Write the sale for $5,000 over, and have the seller give that much back to you at closing to cover closing costs. It is called seller concessions and a realtor will do it. If you don’t have a realtor, write your offer that way. For an FHA you have to live in the property for one year. Good Luck- Pam
I will try to do the seller concession move. I don’t think this property would qualify for an FHA, because it needs REHAB. I do plan to live there and rehab it while I do.
Are there other costs associated with buying that I can have the seller out right pay for?
With a concession, I’m still paying for these costs, right?
Also, according to my mortgage people, I can only get 3% from the seller towards the purchase of the house.
