Banks pretty much want all cash. That means if don’t have hard cash, have your own loan all set up. If it’s a small local bank that might assist with financing, but don’t count it from the bank that is selling.
Typically, you’re negotitating price and closing date. And they like quick closes! (And signing their addendums.)
Survey??? Depends. A real survey costs $400 or more, depending on where property is located and what’s involved. If its a “typical” single family house in a subdivision usually “No”. Unless you see something weird about the boundaries or neighbors encroaching over what appear to be your property lines, or you’re going to put up a fence or garage and there are no “clear property lines”. It’s a judgment call, but usually not necessary.
How to structure financing for REO? - Posted by Mike (Chicago)
Posted by Mike (Chicago) on August 12, 2000 at 16:51:08:
I have acces to about $40,000 in cash. I have a potential money maker for an REO. I havent offered on it yet,because I need to get some information Monday from the villiage inspector for bringing the house up to code. Anyway if the numbers are right and after my analysis it looks good then I would appreciate some advice on how to structure the financing with a hopefully quick re-sale within 60-90 days and hopefully sooner. The bank is asking $84,000. Recent comps sold for $107,000 and $111,000 for same type of house. It really only needs cosmetics except for what the villiage inspector says. If everything fits and after my homework is done, what would be a good way to do the deal. example = More down, Less down, Balloon, 30 years, fix and re-finance??? This will be my first REO deal, thats why I ask. Should I get a survey also? All responses will be appreciated. Thanx and have a good weekend, MIKE