OfflineHello folks,
I am working on getting my first deal which would really be a fantastic deal for me. It is a four unit property 100% occupied grossing $2400 month from rents that just hit the market for $130,000. My agent let me in on this one.
The problem I am finding is that just about every bank I talk to says I need 25% down. I can't even have the seller cover that amount, it has to be from me. I don't have that amount of cash on hand. I have talked to local banks and they are not providing 100% financing even if the deal looks sound.
This is very frustrating and upsetting. What do I do?
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Try to evaluate what the building is worth. If there is a lot fo equity here, then maybe you could assign the deal and make a few thousand. if you desire to keep the building, try to find an equity partner to put up the cash needed. Try to see if another bank would offer you a loan or a second. Just ensure you are generating enough revenue so you have positive cash flow each month. Otherwise try other sources for the cash such as a loan from a friend or relative. I hope this helps. Good luck with this potential deal. Believe and Achieve!
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See will the seller be willing to finance the property 100%. Than you would"nt even need a loan. The seller would act as the bank and you would pay the seller monthly for however long you all agree 5 10 or 15yrs. Than at the end of the terms or somewhere in between you might be able to go to a bank and get a loan for the property and pay the owner off, or sell the property for more than what you owe and keep the profit. All you can do is ask the owner.
GOD first.
I went ahead and asked whether the seller would do owner financing and received a flat out no. I was told that the owner is an older gentleman who priced the property low because he doesn't know what it is worth but just wants to get rid of it for cash now.
I am currently working on a solution to get this property. I am having a broker pre-approve me.
I will see what happens. Thanks so much for the advice. I will keep everyone updated.
That sounds like a great deal! What about private money or hml and then immediately refinancing? I think a property that brings in 2400 a month would be worth much more than 130k. What city is this deal in?
Success and Nothing Less!