Help! First time at Bat - Posted by RW

Posted by RW on July 19, 2001 at 19:10:48:

Thanks Bill for the come back and the advise , we appreciate it very much.
We are playing the sit a wait game notorious in that part of the country. We?re waiting for the listing Realtor to get back to us sometime today. My son has yet to see the inside of the old mansion so we?re sort of shooting in the dark until we get more information particularly about the grant money if that is a fact. I tried initially contacting another broker who has not shown much interest, perhaps because there isn’t much commission involved. Thanks again.

Help! First time at Bat - Posted by RW

Posted by RW on July 18, 2001 at 21:05:35:

I need Help, First time at Bat:

I am trying to acquire a property in a State 1700 miles away but I have a son that lives nearby who informed me of the property. The property is in a historical district and we are told that there is grant money for fix-up. I have no idea yet how much or how it works. Hope someone has had experience in that area. Price at $40,000 . It was built in 1888, brick, 3 story, 5-6 BR 2 Baths, three story, par basement, 50 x 150 lot. Current owner has about 8,000 in equity and has no interest in doing a lease option. He wants cash and out.
I own free an clear a small single family home in a neighboring State about 300 miles from the property. It only worth about $35,000. My second line of thinking was to put some kind of equity loan together but time is of the essence. My fears are that by the time I get my ducks in row, it will be too late to shoot and the property will be long gone. HELP RW.

Re: Help! First time at Bat - Posted by BillW.

Posted by BillW. on July 18, 2001 at 21:56:52:

Of course you have checked the numbers and know this is a good deal, right? If you know it’s good, talk to the owner and see what can be done. Tie it up, subject to financing agreeable to you.
Here are some options:

  1. Assume the existing loan, if you can. Give him the equity by taking a Home Owners line of credit on your other house for the necessary amount.
  2. PACTrust. Use an investor or resident beneficiary for the money
  3. Get a money partner (how about your son?)
  4. See how much grant money you can get. Use part of it, if you can, to offset your cash. This option may only work if you actually do the repairs, or at least you or your son act as the general contractor.
  5. If you have enough credit on your credit cards, (you did make sure to get a few and build the limits for just such a deal as this, right?), just get an advance and pay cash (you might even get a discount, too). After you take title, refinance, and/or get a construction loan to get your money back, pay off the credit cards and you’re on your way.
    There’s lots of other ways, too. Some other’s here will surely have some good ideas to add.
    Good luck and keep us posted.