Posted by JohnP SFL on November 26, 2003 at 11:17:08:
Peggy, Randy gave you some good advice. What is your real estate strategy? Are you looking to purchase for rentals or are you looking to rehab and sell? What is the property worth fixed up? Have you run the numbers to see if it would be a good rental? I mean did you figure in maintance cost, vacancies, accounting etc… The other investor will hold back financing. What type? Will it be a second mtg? What are the terms? If it will work for you then that could be good. I would first analize what you want to do then make a plan on how you want to purchase and then exit the property. I hope this info helps.
I want to thank everyone in this group for the outstanding information. I am in need of your expertise.
Should I be wary of buying properties from other real estate investors who want out for one reason or another? One seller claims he needs cash to enter into another investment opportunity. It sounds good to me, but I’m a newbie so I thought I’d check with the experts.
Could you get taken by an investor trying to get out of a bad deal? Sure, you could… as a newbie an unscrupulous investor could dump a bad deal on you… in fact I turned down a few purchases in my early day s from other investors because I was suspicious of their motives… (being the cynic and untrusting person that I am) In retrospect, I should have taken some of them…
Just analyze the deal, if it makes good financial sense, go for it. IF its a rehab job, be sure to look it over VERY carefully…
Not every investor trying to sell a property is trying to scam you… in fact I’d like to think most aren’t. Many newbies get in over their heads, and need to sell properties… experienced investors can have cashflow problems and need a quick infusion… or get a better deal after locking up a lesser (but still good and profitable) one that makes more sense for them to focus on.
Just analyze the deals honestly, and I definately would not commit to anything until you know how you are going to purchase and finance it. Thinking you can get 100% financing, only to find out that 80-90% is the best you can get from the market could definately cause you do have a bad day.
Know exactly how you can buy, and know exactly what you are going to do with the property before you buy it. (you can always change later if you need to, but have a plan.)
Re: Buying from other investors?? - Posted by Randy (SD)
Posted by Randy (SD) on November 26, 2003 at 09:26:20:
It doesn’t really matter who the seller is, you have to analyze the deal. If the purchase makes sense for your investment strategies it doesn’t matter who the seller is - investors sell property all the time.
If you would care to post some of the details of the transaction may be someone on this board could give you some general recommendations.
$17,000 first 2BR 1BA Single family home
$17,000 second 2BR 1BA single family home
$34,000 total
-$9,000 appraisal difference (but the county appraisals around here are usually low)
We (my husband & I) are thinking of putting Secion 8 renters in because there is a HUGE waiting list (900+ on the list) which gives us a good chance of selecting a good renter and I like the rules they have to live by. Actually, I’m in this to help out those less fortunate.
We’re estimating $265 income off each property, but this is our first one so we’re … how do I put it … ‘edgy’ about it.
We haven’t talked to the bank about it yet. We’re thinking of bringing in the info on our estimates to see if we can get 100% financing. We may do a downpayment note with the seller if he goes for it. We also have $6,000 equity in our home we could use to get started with.
But we have another guy who has properties he’s willing to sell with owner financing that sounds good, too. Crazy!