OfflineI am meeting with a mortgage broker tomorrow so I will be speaking with him about this, but I wanted to pick the brains of all the savvy investors about what they know. I found a property on the mls that is 2.14 acres with an acre of irrigation listed for $125,000. The property is listed as bare land but there is a house on it, it's just run down. This property has so much potential, old growth trees, irrigation, just a beautiful setting. The neighboring properties are all very nice ranch homes. I looked it up on the county website and found that it was bought for $398,000 in 2007 so I figured it was a short sale which eliminates seller financing. I called the agent and asked him, he confirmed. he said that there were renters in the house 4 months ago but they don't know how the septic works because the house was built in 1913, and the water supply is a sistern. So here's my question. Are there any grants or financing tricks to get this property bought and include the fix-up cost in the loan? My understanding is that the house cannot be loaned on in the condition it's in and it will take alot of money to bring it up to the point where it can be. I am still in the process of repairing my credit, so I may not qualify for a construction loan. I am looking for a house to live in and either keep of sell at a later date. This house was bought for almost $400,000 4 years ago and now it's listed for $125,000. I think with a nice home on it it will be worth a pretty penny. I do construction so I plan on investing my time and hopefully being able to restore this home. ( if it proves to be a better path than rebuilding)
Another thought is that this is a historic home and I was thinking there might be some special loan program or grant for resoring a historical site.
Any thoughts welcome
thanks, Ben
Thanks, Ben
I remember hearing about a loan program that builds in the re-hab cost's I am not sure if it was a government program or not? Worth asking about anyway...
These r just my opinions but I think there IS grants or loans for historical structures.Also the banks will not loan on a house that doesn't have a valid water supply or drilled well to my knowledge.This sounds like a good. Potential deal for u as u r in construction.If you could squire this by creative financing and get a well drilled and passed water test then u may qualify for a loan for it or your buyer can qualify for one ......depending on what strategy u plan on using.
My question is how wasbthis property bought in the first place with a sistern?? Isn't this a dug well sort of??
jay
Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...
I guess I spelled it wrong. A cistern is basically a large water tank that you have to refill periodically. My understanding is that it is not legal for drinking water in my area anymore, though it used to be common. So I would have a big rehab on the house, possibly a drain field to build, and a well to be drilled ( or possibly arrange to share a neighbors well). It is also possible that it might work out better to build a house but it all depends on the financing possibilities. I am hoping that I can build this into the offer or the financing, but as I said before I think if I can make this deal happen, a house would make this property very valuable because agriculture and equestrian ranches are a massive market in this area. Irrigated properties can be rented or sold to horse owners, or, with some stalls added, the land could be rented for boarding of horses. I think there are alot of possibilities here.
Thanks again, Ben
Thanks, Ben
is available to buy rural properties. I don't know much about it; but it is the ONLY program that allows 100% financing with commercial lending right now. This is ONLY if it is designated as a rural area though. I do not know if they have a 203K version of the rural loan, but it is something to ask your broker.
There may also be grants to purchase both historical and/or rural property.
Here's an article you might find useful: http://www.ehow.com/list_6159620_grants-time-rural-home-buyers.html
1.) Make sure the irrigation rights come with the property and haven't been sold off
2.) Local Health codes may require you to run a percolation test to see how the soil absorbs waste/septic in relation to the water table. Maybe there is a reason it doesn't have a well.
3.) You might want to find out who thought this property was worth $400k and made the loan on a property with no water supply and listed as bare land with the county.
4). What the property sold for 4 years ago has no bearing on what it is worth in today's market.
5.) Talk to some neighbors and see if they know anything about the property and ask them what the situation is with their wells, soil, and water table.
6.) USDA has loans for qualifying rural areas.
I will follow up on all of these suggestions. I meet with my mortgage broker tomorrow so I will discuss the financing too.
Thanks, Ben