Posted by Brad Crouch on December 10, 1998 at 03:46:06:
Dan,
You don’t mention what the property is worth. The comps are very important in determining whether or not you even have a deal.
Are you taking the seller’s word about how much the income and expenses are?
Brad
Need Advice! - Posted by Dan
Posted by Dan on December 09, 1998 at 21:58:29:
Hello everyone,
I’m new in real estate investing and I need
a sugestion on a possible deal. The property is a
duplex and the asking price is 139k. The seller himself
is an investor and wants to get rid of some small units.
There is only one mortgage on the property with a private
party, a ballon of about 80k due on March 2001. The income
on the property is $1,400 and the expenses are about $1,000
which include 1st mortgage (terms are 9.5%, payment $740/mo), tax and insurance.
There is some chance that the private party will
further extend the ballon due date, but I wonder if there is any way to live with the existing one.
Question #1: Is it any way to have a good deal here?
Question #2: Any sugestions of how to structure a deal?
Thank you!
Re: Need Advice! - Posted by Irwin
Posted by Irwin on December 10, 1998 at 06:36:31:
Sounds like you’re paying too much, and knowing that the seller is an investor, you can probably count on it. What was the $80k mortgage for? Did he recoup (most of) his cost, which means he’s trying to make a bundle on you? What is the FMV? If you have to re-mortgage in 2+ years will you be able to do it?
It’s tough to make money buying from another investor, unless he is just a finder, looking for a quick fee on a flip. That doesn’t sound like your situation here.