OfflineI phoned this guy I had met once at a friends house and knew he was an agent. I met with him this morning and he was totally tuned in. He started to work with me straight away and we researched properties to buy with the view of renting as he is managing a lot of properties.
We chose one and went out to look at it. It was very good but we decided with the comps in the area and things that needed doing to the house, that we would offer $125,000 when they wanted $149,000. He is keen on rentals here as there is a constant and increasing demand for 3 bedroom, 2-3 bath homes with pools for the military people who TDY here for anything from one to 6 months and you can put 3 in a home and make double your monthly mortgage payment each month. He worked it out at the very minimum, this home would make 54% profit in a year. I asked about the possibility of it being empty at any time and he said that would not happen. He deals in these all the time.
He gave me the name of a friend of his who is in financing with Castle and Cook Mortgage, phoned her and I dragged my husband over to see her. Naturally, they require that we have 10% min deposit (which we do not have) but they ran us through and we were approved for the $125,000 if we wanted to make that offer and can get the deposit.
I phoned my agent back and he said not to be too hasty that we could look at a few others as well but it was good to go through that process.
So, I have not YET made a deal, but I made amazing leaps and bounds in my understanding of this maze and I feel confident that this very dynamic agent will work very well with me and help me to make my first deal real soon! YEAHHHHH...... (despite my husbands constant negative about it all)
I have to try and figure out how to do a deal like this with no money down???? Any suggestions????
Deb
You could make the offer such that you offer $125k and ask for $12.5k cash back at closing. The worst they can say is no. If they won't secure the down payment against the cash back, then you could take a personal loan and repay it from escrow.
I am sorry to bother you but I am still so 'green' with this stuff. Can you explain how this works? I was looking in the book and I know it has to be there somewhere, but I cannot find it; even if you can tell me where in the book it explains this technique.
I even searched this site but could fine nothing to explain the cash back at closing stuff.
Thanks for your help.
This house is through a real estate agency, does this make a difference?
Deb
Anytime you ask for cash back, you want to give something in return for value. For example, you mention that "comps in the area and the things that needed doing to the house" He may agreed on the price, but you may also have to lowball your offer and use the repairs to justify your offer.
Even if you purchase the house for 125k and the house need repairs, then the 24k is not that much room to work with. I'm not trying to discourage you from going after your first deal, but you want to make sure your first deal will be profitable. Just make sure if the house doesn't need any repairs, then the offered price might be ok, but if the house needs repairs, then you might have to ask for cash back as dgadmin mentioned above. Good luck and don't you ever give up on your dreams, your island friend.
Lloydsap
Ohh Dabie see you found an Agent that was right for you I'm so happy for you good luck with the house. Lilie
I'm sorry I haven't been on here much to cheer you on, but you're doing so great! I'm so glad you found a good realtor. I answered your PM as best I could. dgadmin and lloydsap had good words for you. If the cash back thing doesn't fly, what about the personal loan? Do you ever get solicitations in the mail from credit card companies offering fairly decent rates on personal loans? Might be an option.
Keep it up, Deb!
Your friend,
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
I believe that with the repairs that this house needs, including some cracks in the bottom of the swimming pool and that it is not properly and safely fenced, the reduced price should fly and I will look at that.
Thanks for your insight and I really thought more about it from your message. As Dean says, make up the list with the repairs that will be needed and this should back your offer at a lower price. You remindd me of that!
And the house has been on the market for 155 days now.
Thanks for the food for thought!
Deb
Thanks. I am so glad that I got an agent too. I hope he stays true to me and then I will be off and running!
I have had another couple of serious dramas to contend with at home and they just confirm that I need to do this so much.
I have a house to look at on Wednesday which is owner sell and has been on the market for over a year and looks great. The owner really wants to sell and will negotiate and it has been rented for a long time with no problems and a great tenant. Keep your fingers crossed for me!
Oh, as we speak, another disaster! My husband just went through the ceiling in his attempt to get down from the attic. He has been up there for a week (not all the time...lol)trying to fix our houses electrical wiring. It has to be completely re-newed as an electricial told us (after our lights and power in several rooms went off) that we are lucky our house has not burnt to the ground because the wiring was done wrong, horribly wrong!
Then our insurance company cancelled our fire insurance the other day because they found out that my husband had gone bankrupt 4 years ago! We cannot get new insurance just yet as we have to wait for the refund from them to get a new one. YEP, that is how broke we are! So we are living in a fire trap with extension cords all over the floor and electrical wires and holes in the walls and roof!
And this morning I get a phone call from Australia that my daughter has gone missing in the worst suburb of Sydney in Australia 2 days ago and so I have to borrow money from my father and fly back to Australia. She has apparently gone to a wild party and not returned home. She was supposed to spend the weekend with her 2 children and did not show up and no-one can get hold of her.
Sorry, I just needed to get that off my chest as I am a little stressed! I will be trying to work it out anyway. THIS TOO SHALL PASS!
You poor thing, you got all my venting. But thanks. If I don't have anyone to talk to then this is the best I can do to stay sane......lol
I hope you can forgive me and thanks again for your great support!
Deb
I read your PM and I do appreciate your help and advice. I know that I will make it in this REI career. I have had many emails back and forth with my new agent and he has been getting me comps on properties as I ask. He sends me lots of info.
I am going to see a home that is sale by owner. I called him yesterday and asked some questions; he has been trying to sell for over a year and is very willing to negotiate the price. He is still paying a mortgage on this property; 4 bedroom, 2 bathroom and beautifully renovated and kept and in a great location. It is rented to a very reliable tenant who also wanted to purchase the property but could not due to some unfortunate circumstances. (oohh, there is another area to look at! I may be able to help him find a way around his problem....hmmmm worth a thought if I cannot get the property).
Anyway, I have arranged to see the property so I will let you know.
If you know of what I should look for and what to ask then let me know. I have already asked a few things. He has a mortgage; should I ask how much he owes or is that out-of-line? I am printing out the repair sheet that Dean has on this site to check off as I go in case of anything that I need to check. I already asked him how the electrical wiring was since we are having a nightmare with our house and I never want to go through that again!....lol
Thanks again. I really need to make this work and quickly because we are sinking into the money pit!
Deb
Fine, fine, fine....
Deb
Get a partner who has cash. You do all the legwork and they provide the down payment.
Hey Dabie don't apologize for anything that is good that you get you worries out of you and don't bottel up and we are here for you to listen and to help and give support. I hope you will find you daughter and she is happy and helthy. And Dabie I would to ask questions about if the insurance cancel on the ground of the bancrupsy they did not have a problem with it at the time the policy was issued (because the insurance companies pul credit report too)and now they are canceling that you have wir problem (fishi). I do hope for you that you daughter is fine. I'm very sorry to hear about that. But you are bigger than you broblems you can solf them just ask the right positive questions how can I fix these? Best of luck and please let us know about you daughter. Lilie
That's life!
Deb
OF COURSE!