Posted by dew on May 28, 2000 at 22:08:37:
Of course they would owner finance you. Whatever you do DON’T tell anyone you have $30,000 to put down!!!
Unless you want to qualify for a loan and need that to get into the loan. Probably won’t need that much though either. Be careful. Shop around and don’t tell anyone all that you HAVE, they’ll want it all. You really aren’t in that bad of credit mortgage shape if you shop around.
Would you offer owner financing to someone like ME?? - Posted by Donna
Posted by Donna on May 27, 2000 at 01:04:43:
I have good recent credit…but my former significant other’s bankruptcy is appearing on MY credit report. Primarily for being an “authorized user” on a few of his credit cards. That is so unfair considering I haven’t used his credit at all in the past decade!!
However, being realistic, I KNOW it’ll take me a while to fix up that credit problem. In the meantime, I can provide paycheck stubs or a letter from my employer to prove my employment status. AND I have that all important thing, $$$. You see, I currently own a home, that I will be selling shortly, and expect about $35k from it NET. I am looking at some houses priced under $100k. I can put all $30k into it, but don’t plan to.
I’m not looking for a house from you folks, as I have not one but TWO motivated sellers. But before I approach them, I’d like to find out what my chances are with ho-hum credit, but with $$$ to put down cash?
Thoughts please?
Donna
Re: Would you offer owner financing to someone like ME?? - Posted by David Alexander
Posted by David Alexander on May 27, 2000 at 13:36:03:
Learn to buy houses By taking over the existing loan, meaning you will buy the house subject to the existing loan. You dont qualify for anything, you simply look for motivated sellers and solve their problem.
Example: maybe someone has a house worth a 100k, and they are 5k behind on payments, and the house needs 5k worth of work. They dont want to screw their credit up any further so you offer them the solution to solve their problem and save their credit.
Maybe they owe 70k on the underlying loan. You take over payments, fix the house, catch up the back payments and now your into this house for the monthly payment plus 10k.
You turn around and sell the houe for a 110k with Owner Financing, with 10k down. You carry back a note for a 100k, You now have a profit of 30k, and a cashflow of approx. 300/month and No Money left in the deal.
Or maybe you just retail the house and list it with a realtor and wait for it to sell, with an asking price of a 103k. You get an offer of 100k and it closes after realtor fees etc you net 92k or so. 92k - minus 70k leaves you with 22k cash at closing or a 100% return on your 10k invested.
That’s how you make your money work for you.
David Alexander
Re: Would you offer owner financing to someone like ME?? - Posted by Vic
Posted by Vic on May 27, 2000 at 02:56:28:
Donna,
Even though the bankruptcy is still showing up on your credit, you still may be able to get a regular mtg. loan, if you want to. If you’re buying a house for less than 100K & you can put down 30K, that means you would be putting down 30% or more. Chances are good that you could find a mtg. broker to do that loan for you, regardless of what’s showing up on your credit - so long as it’s not liens or judgements.
Vic
What makes you think it will come up? - Posted by JoeKaiser
Posted by JoeKaiser on May 27, 2000 at 01:14:32:
In the real world, the credit issue just doesn’t come up as often as you might imagine, especially when you’re talking motivated sellers.
Make your offer. The cash down payment will get you well on your way to where you want to go.
Joe