OfflineGood morning DG Family:
I wanted to know if anybody could direct me in figuring out the best way to close this deal. My comps at 583,000. It is a short sale so I was told that they would accept 350000, I have someone who wants it but is self-employed so they are unable to get a loan because they would need a stated income loan. She is willing to put 20,000 down and pay 2,000 a month. I am thinking about using hard money to purchase the place then lease option to purchase this deal. What cost would I have to calculate to figure out if it would be profitable for me? I have good credit but no real money to help with this deal. I really would like to make this work. Any suggestions?
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Lee Jon Sam Fong
I was hoping someone with more experience would see this and respond, but I'll throw my 2cents in if no one else will, LOL!
Just from plugging your numbers into my little spreadsheet, it looks like my HML would be wanting nearly double what you're looking at for a monthly payment on the $330k. Even with a conventional mortgage at 5.5%, with conservative taxes, you're looking at over $2k per month on the payment - that's negative cashflow.
I would play around the amortization calculator on here with different loan amounts and interest rates, to see what you can do. i would also look for a cash partner who will split the profits with you, and put up enough cash to make it do-able deal for your buyer.
Good luck and keep us posted!
Tracey
If they will accept 350k maybe they will go lower. You never know, try and figure out what the monthly payments will add up to if you offer 300k, it can get accepted, you never know.
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Bruce Springsteen
has EYES that are too big for his pocket book......2k per month will not cover that size of loan......even at conventional......Mouse is right...HML will be twice that payment.
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I am going to look at 37 properties on Monday that have been reposesed by the county. I spoke with the company that county has outsorced the sale of these properties to and they were not very helpful. Has anyone bought properties from a repository sale? If so what was the basis for your bid? I was going to bid one year of taxes. Is that a high enough bid to secure the properties? The outsorce company did tell me that if my bid was accepeted that these properties titles are free and clear of liens. Is this true? should i do a title search anyway? This could potentially be my first deal so any help is appreciated. Thank you in advance.