Need advise on getting this property - Posted by Evelyn

Posted by Dale(Oh) on October 21, 1998 at 17:31:29:

Evelyn, if your considering a balloon payment at the end of the lease opt. you have to be sure you can pay at that time or all may be lost. Also if they are going to require more than 10,000 down you can possibley get them to take a note or a second mortgage to cover the rest of the down. But, by all means go for the lowest amount down you can get. just a few sugestions, I’m still a newbe at this, but have made my first deal on a two family. Good luck Dale.

Need advise on getting this property - Posted by Evelyn

Posted by Evelyn on October 21, 1998 at 17:00:18:

First, let me thank everyone who answered my message so quickly. I really appreciate your assistance.

I am really interested in this property, but I do not want to get into something with payments which may become a problem one day. I can afford it, but who knows in the future what may happen.

Again the property is being offered at 239,900.00 and the owners want to finance at 8 %. I was wondering if I split the loan up, let’s say pay for 125,000.00 within the next 10 years and then pay the remainder of the balance (balloon payment?) at the end of that term.

Basically, does anyone have any ideas on making this opportunity come to reality.

Here are some basic facts on the property:

It has 2 units in the main house, 1 of which we would use. 2 bedrooms in the attic that are renting on a weekly basis. And a garage apartment. In total the property has an income of 2015.00 a month, counting the “rent” that we would pay. The total of taxes, water fees, etc. comes out to be
approximately to 1050.00 a month.

The owners want and appear to need a down payment. I am only able to come up with 10,000.00. I believe given the right proposal they may accept. They have had this property for over 3 years on the market, on and off. They go to Florida in the winter and take it off at that point.

The property is in great shape, woodwork untouched. It needs some updating in paint, but nothing major. It is a solid, brick house. It’s a great neighborhood. In my opinion they have not been able to sell due to the fact that for starters the price is a problem. Most people looking to invest in property worth that much do not want a house that has been split into units. (Use to be a mansion). Also, the fact that these owners do not want to have the house bought out and out due to them having to pay interest on that amount. So they definetly want to finance.

I know where there is a will there will be a way. I just think that this would be a great investment and an opportunity to get a house that we would not normally be able to get.

Please help with any suggestions you may have to help me. I’ve been reading Carlton Sheets and I’m very inspired that this will happen.

Balloon payment, lease to own?

Any information you may have is greatly appreciated. And thank you for such prompt answers.