Posted by JohnBoy on July 04, 1999 at 19:14:33:
Offer $2500 down payable within 60 days. Advertise the property for a L/O and get $3k - $5k down from your tenant/buyer as “Non-refundable option consideration”, then take $2500 from that to pay the seller his down. You pocket the difference, get a positive cash flow each month and pick up a spread on the back end when and if your tenant/buyer exercises their option.
Financing the down or increasing purchase by $5k - Posted by John Blume
Posted by John Blume on July 04, 1999 at 17:39:54:
Ran across a pretty good deal. Owner/Landlord wants out, but not desperately. Home is $55k, wants 5k down, 8% over 15 years. Roughly comes to $450.00…Easily can rent for $575.00…However, I don’t have the down payment…Can I increase the purchase by 5k or raise the interest to make the difference? Thanks.
Been doing this for awhile and No money down seems to be rather impossible, especially with poor credit. Thanks in future for help. John
Re: Financing the down or increasing purchase by $5k - Posted by Bud Branstetter
Posted by Bud Branstetter on July 04, 1999 at 20:34:52:
You say this is a pretty good deal. Is the property worth 10K more than you are paying? Is 8% under market rate for loans? My figures show P& I at $478. With taxes and insurance in this area your talking at least $100 a month more. Unless you can find someone to pay more or awful sure he would discount in the future I don’t see much of a deal even if you had the 5K. Price or terms have to be beneficial to you(not him) to make money.