Posted by ScottS(NC) on April 20, 2002 at 22:24:30:
John,
A good friend of mine recently lost his home and moved(diffrent reason but same results). This guys a excellent business person and does Lonnie deals also. Here’s what he did: Buy a Lonnie deal and move in. What better way to save money than just pay lot rent for awhile and then take all that money that was going to house payments and save it up. Do this as long as you are able. Keep buying more Lonnie deals. Before long you will be making more per month than you are paying. At this point you can save alot fast. Then build or buy a regular house and use SOME of your savings as a down payment. Just watch those monthly payments. My friend will be financially free in short order. So can you if you are willing to sacrifice alittle now for alot later. Your post did not say whether you are married or not or have kids. These could alter the above plans. The concept would still be the same though, live as cheaply as possible invest everything else soon you will be able to pay cash for the house of you dreams. HTH Take Care ScottS(NC)
Getting around a R E agent (off topic) help - Posted by JohnT (WA)
Posted by JohnT (WA) on April 20, 2002 at 21:54:17:
I’ve been putting all the things in order to begin doing Lonnie deals ( rehabs actually )in the next few weeks and I get an e-mail from my landlord. She has lost her job and wants me to pay the entire monthly amt of her note 850.00 (my rent is 600)to keep the bank from taking the house. A few hours later her boyfriend who owns a house down the street gives me a call and after talking a bit it’s clear she wants to shake off this gator and let the bank have the house…we have to find a new place…The boyfriend’s house down the street has been empty for about 6 months, he lives out of town…he said he’d like us to consider moving in ( we’re pretty good renters) But…he just listed it with a realtor two weeks ago…he said if we wanted to buy, 89K,(Real value 75-80k ) he would be very flexible and carry the paper…thing is I don’t want to spend my MH money moving into this house.So does anyone have any suggestions, besides posting this to the other forum.
how can we get around the realtors if I just want to cont. being a renter and cont on with my MH plans or
What type of offer to make him that would get me into the house, deal with the realtors and not eat up my 4K seed money for my MH rehabs…I’m thinking net lease with option to buy…the girlfriend will owe me a 600.00 deposit when we leave, thats a plus, I’m sure he’ll accept that as partial payment and Oh yeah…the RE market in this town is dead…and as spring warms up, more folks are headen out of town…
So put on those thinking caps and start perk-a-latin…lol…appreciate any help I can get…
tell the guy that theres no way your givnig 90K for a 70K house. try to get him to come down as far as he can. being an investor, you shuold have negotiation skills at your disposal.
get the guy to accept his g/f $600 that she owes you as yuor down payemnt to him. that gets you ni the place for no money out of your pocket, just get her to pay him, if not in cash, then he may just overlook the actual cash since she is gonig to have to give it to you, which is effectively taking it out of the family’s pocket. she may be able to help convince him for you onthat one, although youll not know about it. once she starts complaining about paying you $600, he may just allow you to roll it over to his house. tell him that you will L/O the house for 70K which is the actual value and this gives you a place to live while you do your lonnie deals. once you get yuor deals rolling, and you can afford to buy a place that you really want, you now have his house under contract, and you can start marketing. now you can sell his house for full value plus 10%, which is what hes trying to do to you. the only difference is right now, the house has been vacant and is probably a bother to him, he may take what he can get to get rid of it. you wont have that problem because you have been living in it. hopfully you can market it a little better than he was able to do.
as far as the realtor is concerned, if he carried the paper on an owner carry back note, then that is considered a sell and the realtor will want their money up front. however, a L/O is no a sale until yuo exercise yor option to buy, therefore, the realtor doesnt collect his fee until that time. the realtor will be unhappy about this and point out all kinds of bad things involved with L/O but he is just protecting his commission. tough cookies for him, unless you decide to work that out with the seller and realtor at the time you negotiate the L/O.