NEED HELP WITH AN OFFER - Posted by diana

Posted by Tom on June 30, 2001 at 10:02:46:

Offer her $90,000. She goes to bank and finances for this amount, you take over payments Subject To.

NEED HELP WITH AN OFFER - Posted by diana

Posted by diana on June 30, 2001 at 09:37:31:

Large duplex both sides 3 bedrooms. Great location. No major repairs. Rents for $1200 a month. Seller wants $99,000. I only have 10,000, at most, to work with. Mortgage company wants at least 20% down. I asked seller a month ago if she would hold a l/c with 10% down. She said it is an inheritance and she would like to be cashed out.
I am quite new, with only two other properties under my belt through conventional financing. I would like some creative ideas that will help with low cash right now.
Should I just put the l/c in writing and see if she’ll take it this time. Or maybe offer her a l/o or …

Re: NEED HELP WITH AN OFFER - Posted by SueC

Posted by SueC on July 02, 2001 at 10:23:53:

Diana, would she take a second just for the other $10K DP? That way she’d get most of her cash, and you could give her 3 or 5 year balloon terms so she’d get the rest fairly soon.

Re: NEED HELP WITH AN OFFER - Posted by keithk2

Posted by keithk2 on June 30, 2001 at 21:23:56:

Diana,

If shw wants to be cashed out, offer a land contract and have her sell the first 60 payments or so. She could also sell the entire note but she’d take a much larger discount overall.
Drop me a line if you’d like me to give you an offer for the note or the front payments.
All success
Keith

Re: NEED HELP WITH AN OFFER - Posted by Ronald * Starr

Posted by Ronald * Starr on June 30, 2001 at 12:36:58:

Diana----------------

You might be able to find a lender who would loan 90%, if the property looks good and appraises well. Have you talked to a loan broker about finding you the loan you need?

Since you already have assets, you may be able to use them to help you. How about a blanket mortgage covering this property and it being a second on your own home or one or more of your rental properties? This could give the lender more security. Try to get the lender to agree to remove it from the other property when you have paid perfectly for a year or two. That would show them you are a good borrower.

Could you get a second loan on your home or the other properties you own. This could give you the rest of your down payment. If so, it might be better to get a line-of-credit loan rather than a standard mortgage loan. Then, when you have it paid down, you could easily borrow more for some other deal, if you want to do so.

Are you sure this is a good deal? Did you do a good analysis of the cash-flow situation? Did you check your comparable sales, so know this is good.

She says she would like to cash out. Sure, who wouldn’t? But what is there about an inherited house that REQUIRES a cash out? I don’t think there is anything. She could carry for a while. If you could afford it, try to get the 10% carryback by her paid off in about 5 years. That would be about $200/mo, could you do that? If she is a typical person, she will put that money into a CD paying about 5% interest. If you pay her about 7.5 or 8%, she could make more money. Also, if she has a taxable profit, the installment sale election could spread out her taxes on the profit. She can make money on the money she owes Uncle Sam. She may not have a capital gains tax, since it is an ?inherited property.?

Good Investing*******************Ron Starr********************