OfflineJust a brief note on a property offer that was recently accepted. The Inspection is scheduled for Thursday at 3pm and financing is good to go...
Here is the offer and plan;
Offer is $103,000 with seller paying $4000.00 towards closing and also providing a payment of $15,000.00 for misc repairs after closing.
I'm lucky to have a little history, so I have obtained temporary financing for the downpayment $20K @ 15% interest....Not bad for an investor! but this is only a short term loan.
The plan is to use a portion of the funds to fix up some key items and then refinance with the local bank that has no seasoning required and will refinance for the entire 103K and pay back the temporary loan.
No money Down!! Up to 27-Units with None of my own money for acquisitions.....
Luck is when Preparation crosses paths with Opportunity!
How are you doing these deals? That's amazing.
thanks for sharing! it is amazing that you bought a multi-unit with no money of your own!
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Great to hear that you are still in the game. Sounds like a sweet deal for you once repairs are complete. Are these all single fam homes? How much repair per home.
Now the big question. How did you get the bank to take a borrowed 20k as the down payment? Either way you look at it, sounds like you did your homework here. Great going...Jan
Now THAT'S how you do this!
Here is my best shot at answering a few questions;
1) The properties that I've purchased are all multi-unit homes 4-unit and above.
2) Local banks tend to be flexible with the terms of the loans...for example the last property 11-unit I purchased, the owner financed 20% of the purchase and the bank 80%, the owner also kicked in a 10K check to me at closing for repairs and paid closing costs. FIND Sellers that are motivated and anything is possible in the negotiations! We are in a buyers market folks!
Just keep in mind that many investors that have been in the game for many years are retiring! That means they need to offload and they likely have little or no mortgages left on properties and many times they need to sell these assets one at a time.....painful process = flexible terms!
Any questions let me know I'd be happy to help!
Although I have a great deal of mortgage related debt, this is good debt and in total in like 3 yrs we now own approx. $1.3M in real estate! Exciting stuff....just make offers and find motivated sellers and be willing to get your hands dirty and learn!
Luck is when Preparation crosses paths with Opportunity!