All Forum Posts by: Peter J

10% down, no PMI, will do 5 year or 10 year balloon amortized over 30 years. Rate was good <7%. It is a small community bank. I agree, it sounds too good and I'll be sure to read all the fine print. Some banks need loans that have the deposit so we can't lump all banks together and assume they all are struggling. I'll keep you posted if and when I do this.

Jon,

Good point. So in this case the seller does currently have a loan. so if his bank calls the loan due because he was taking my payments and gambling with them instead of paying his mortgage I could be stuff with paying his bank loan off quickly?

Please clarify. Is it appropriate for me to ask for detailed information on his end so I can be assured of his financial security?

Jon,

That is exactly what I was asking about. Do you suggest doing a contract for deed or do you suggest staying away from them? What I gathered from your post is that it is neither bad nor good but just another way of doing business.

Is there a reason a seller would want to sell on contract vs. just selling it and being paid in full up front?

Thanks again.

I guess my biggest question is whether the contract technically puts the property ownership in the buyers name. My situation is a two year contract amort over 20 yrs, 7% interest, with 6% down. Or an interest only for two years at 7% if I puts 9% down. I just don't want to put cash down if the property is still in the sellers name for two years and they could walk away with my money. also, can I dictate leases??? as you can see I have many questions and am having a hard time finding the answer on Google.

Can I have the nuts and bolts of buying on contract explained to me? If so, please explain in simple terms as I am a newbie.
I do appreciate the help and time!
Thanks

Fred S - I feel your pain as I am just getting started which may be different than you but our end problem is the same, how to buy a property or 1-30 properties with limited cash? I can see leveraging existing properties to get that cash but from a risk management perspective I don't think leveraging is the best route to take.

I still get anxious because I do have a local bank that will do 10% down with no PMI on a 10 yr balloon amortized over 30 years but feel I need to act quick before they wise up!!

Again, what do many of you do for down payments and where do you get the money if you don't have the hard cash sitting in a bank?

I'm keeping the faith someone will help with this question. As always, I'm very appreciative of everyone's advice since you provide it free.
Thanks.

Newbie question, what is bird dogging?

Kyer, Anything you can tell me about your experience with your first property would be great. Have you purchased any more in the past two years?

What has been your experience with renting to college students in a highly student dominated area?

I found a property that actually meets the 50% rule but it needs about $50k in repairs first. Listed at $35k + $50k repaits = $85k but gross rents are $2100.

Let me know if there is significantly more risk in renting to college students because of the turnover and possible damage.