Posted by Dave T./FL on June 16, 2005 at 05:14:57:
Hi to all:
I really don’t know a whole bunch about investing except that I have friends that “say they are REI” and encouraged me to do the same. I understand the simple concept (buy low, sell high) , but right now lack the courage to buy my first investment home which is staring me in the face from a friend. A single family home that is in a very sellable neighborhood, 10 yrs. old being sold by a son and his wife of an 80 something old woman. Home is immaculate except for 10 year old expected things likes, needs all new carpet. I want to do some kitchen work (myself) and install some hard wood floors too. I can do some of this myself without a problem but do I just go for a conventional mortgage and then sell in 60-90 days when I’m done w/renovations? Family and I may want to live in it if it doesn’t sell for what we’re planning on pricing it at. Does “hard money” (don’t know what it means) come into play here? If I go for an investor friendly loan, am I going to be locked in (prepayment penalty too high) to a high interest loan if I do live there? What are my few options? What would you do?
Some more info: home is paid for & profit $ is needed for healthcare for his mom, so seller mortgage or anything like that will not be possible, price/terms are not negotiable, basically he said “Dave if you like it, it’s yours, otherwise I’m going to next person.”
You have an unmotivated seller (no willingness to negotiate price, no ability to be flexible on terms).
If you do proceed, then you need to know FMV, ARV, rehab costs, holding costs, closing costs, and what your exist strategy is. If you are unsure of any of these, then I suggest you spend quite a bit of time reading the archives here to get up to speed.
Under the best of circumstances, unless these sellers are offering a screamin’ deal to get it moved fast, then I’d pass on this anyway.
Posted by Dave T./FL on June 16, 2005 at 05:30:15:
I realize that and this was my plan. I needed a little more assistance though. I have $0 to put down (closing I can handle) so I need 100% financing. Are there 100 LTV loans out there that I should look at for a possible investment?