Need help with my first deal! - Posted by Pattie G

Posted by Stewart Preston on June 29, 2003 at 24:50:37:

Have you tried posting this in the main newsgroup?

Need help with my first deal! - Posted by Pattie G

Posted by Pattie G on June 25, 2003 at 18:17:35:

We, my husband I have been trying to get into real estate investing for about 6 months now. The problem is my husband has been unemployed

For over a year and we have been struggling financially to stay afloat. I have been researching the local market here in the Philadelphia area and

Have selected a clean working class target area that seems to fit our planned initial investment strategy! We have identified our first truly motivated seller, who stated that he is not hurting for the money and has not advertised ( I found him by searching for absentee owners) the desire to sell this triplex publicly! He is welling to do creative financing with a seller carry-back. All we have to do is make an offer (which we have never done).

Here is the stats:

Triplex fully rented: $75,000.00 asking

3/1 bdr apartments

monthly cash flow is 1425.00/mo

expenses: taxes 1400/yr

insurance: 500.00/yr

New roof, hot water heaters, and totally rehabbed already

Tenants pay all utilities except water: Current lease has a clause that any water usage over 25.00/mo will be billed to the tenants (1/3 each)

Comps come in at $75-95,000.00 in that area. Owner is also an investor who?s primarily farm area in on the other side of town! This is his only

rental in my farm area.

The triplex is a cash cow and offered at the low end of the market values for this area! We are pretty excited but have little to no cash! My question is two-fold: 1) Can you offer us any suggestions on how to write a creative offer and 2) Do you if there are any hard money lenders who would be willing to help a struggling, very motivated new investor? We would really like to get into the game

Re: Need help with my first deal! - Posted by Terry(IN)

Posted by Terry(IN) on June 29, 2003 at 09:57:19:

Since you are dealing with another investor, he may be willing to help you get started. I’d try to get him to do a contract-for-deed. If he does agree to that, he is probably going to ask for a down payment. Can you borrow downpayment and closing cost money from anyone? Explain to him that he would have to hold that note for no more than 1 year. Depending upon your credit, you might be able to find a note buyer who would purchase his note at closing, or even with not so good credit and a good payment history, that note could be sold in a year with no problem. If you need more detail, email me.