Paul, sounds like a good deal. Congrats! How about this: Would they do a one year lease option if they agreed to finance for the year, but you agreed to a higher selling price after the year’s time? The reason I ask that is that if they are old, maybe making the repairs themselves with their own money (or lack of it) is out of the question, physically and financially. If you offer an agreement in writing that actually gets them more $$ - and possibly before the year’s contract is up - they might go for it. Then, you fix it up, sell it and take the profit. I may have missed something in all this, let me know. Good luck! -Dan
I met with the seller today of a house. My offer is $40K, with the seller paying $1800 of my costs and taking back a second for 5K, due in 90 days. New loan for the 35K. House needs 4K of work. EZ value at $65K after repair.
This structure will allow me to get the property without any of my own money to acquire, but I will use my own $ to repair. My objective is to repair and refi to get my repair money back out and put in a L/O buyer, which I have done with the last 4 properties.
What I don’t like doing though is acquring 2 loans, 1 for the purchase and the 2nd for the refi, which I have been able to do without seasoning fairly easily. A new lender I hooked up with can get me the 35K at 9% with 1 1/2 pts
( 100 CLTV) , which for me is the best I’ve been able to get so far. I would like to get 85% (no problem ) to 90% of appraisal after repair,
How can I restructure my terms to allow me to accomplish this in a more cost efficient manner. the sellers are very old and want the $ now, and won’t carry any longer than 90 days, at this price. The seller will also consider letting me put the property into escrow for 90 days, and let me do the repairs during escrow if I give them $900 up front. If I am going to leverage this property for its equity, how can this arangement help me, because I won’t be on title, and the seller wants minimal capital gains. Is there a way to get maximum cash out of the property that I am missing, while still being able to meet the sellers needs, and without incurring extra loan fees? And I want the 9% interest rate.