OfflineI'm looking at a 4-unit residential property in central connecticut. The seller (who inherited the property) is motivated - doesn't want to deal with managing the units. The house is currently only 50% occupied. It is currently bringing in $1700/month at 50% occupancy and would bring in $3400 at full occupancy. I estimate the value at $220,000 and the house is on the market at $195,000. I have access to some private investment funds, but certainly not the 25% required for traditional lending.
I think this sounds like a good deal for me, but I'm looking for ideas on how to get it done.
Can I use a hard money loan for the money down on a traditional mortgage?
Can I use private investment funds ($20K max) in conjunction with hard money to finance the entire purchase?
Should I look at the option of seller finance for some portion of the financing?
I'd love feedback from some of you with more experience.
Thanks in advance!
steve
Hi,
I have a suggestion. I own a four-plex and when I first purchased it, it needed some repairs and the seller was really motivated to sell it. I said if he would give me a check for $10000 at closing for the repairs I would buy the apartments. He wrote me a check for $10000. Of course, I didn't use the money for repairs but to invest in another property. You may be able to do this for your down payment.
I have a suggestion. I own a four-plex and when I first purchased it, it needed some repairs and the seller was really motivated to sell it. I said if he would give me a check for $10000 at closing for the repairs I would buy the apartments. He wrote me a check for $10000. Of course, I didn't use the money for repairs but to invest in another property. You may be able to do this for your down payment. You also may be able to use a promissory note for a portion of the down payment.
You also may suggest giving the seller a certain amount of the rent until the down payment is paid up.
I think this sounds like a good deal for me, but I'm looking for ideas on how to get it done.
Can I use a hard money loan for the money down on a traditional mortgage?
Can I use private investment funds ($20K max) in conjunction with hard money to finance the entire purchase?
Should I look at the option of seller finance for some portion of the financing?
I'd love feedback from some of you with more experience.
Thanks in advance!
steve
Do you have good credit? Do you know if you'd be approved for a conventional loan? Owner financing is always a plus, it is worth running it by the seller. See what he says.
Jeremy
This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams
Bruce Springsteen
Thanks for the great ideas. I'm going to give that a try and see where I can go with it!
I really appreciate the advice!!!
steve
I have a transaction that is about to fall apart. The current assessed value of the property is $68k however the sale price is $17.8k. There is a long term renter who just wants to continue to pay rent and the seller just doesn't want the property anymore. Her husband passed away and he was the investor. My deal is falling apart because the transaction amount is to low for financing. The renter is paying $475 a month and a mortgage would be maybe $115 a month. My credit is good so there is no issue however no one will finance that low. Any help to close this deal would be greatly appreciated.
Drew
How about an offer of: 8K down payment from Gov't + wraparound financing for the balance with a 3yr balloon if Owner occupied? If simply an investment property do wrap but without the 8K from Gov't.
Hope that's a viable option(s) for you,
Mr. Resourcefulness
You may look at an overprice offer of about $3000. or little more an may be able to reach the banks min loan amount if its around $20-$30,000.
If your credit is good, just get a Personal Loan, or use credit cards to buy that property.
Try the suggestion from Abner6, if you have a clear credit card you might be able to get a cash advance. Watch the rates though. With this economy, and credit card companies on a feeding frenzy, the rate might be to high. but if the property has good cash flow, you might be able to go this route...Jan
at higher value get say 40 or 50 get the money at closing.
that way you walk away from closing with 22 to 32 minus your down payment.
Try contacting a loan broker
Thank you for all of the advice. I purchased it for cash at $15.8k with a long term renter.