All Forum Posts by: Heather Pelletier

"I think you bring up an interesting point especially with the uncertainty of the stock market in recent months, is real estate a better storage of wealth/savings than the bank or the stock market even."

What do you guys think??

Thanks Ben,

I'll have to do some math. If I can get it for only 3% down it might be worth it.

Heather

Thanks J,

That's what I assumed. I didn't know if the bank that owns the property would be more generous with financing because they want to get rid of it.

Heather

Hey Mike,

Thanks for your reply. I know the 2nd one is NOT a deal, my question was how much value does 100% seller financing have. As far as the 1st property goes, isn't there some value if the property pays for itself. One of my goals is to secure my retirement, I'm looking long-term. If the property pays for itself and I don't get any cash flow but gain equity over the years isn't that a success? I am 34. If the property is paid for in 30 years, I own it free and clear that's income for my "golden years" correct? Am I missing something here?

I appreciate you taking the time to respond. Please do not think I am doubting your advice. Just wanted to explain myself a bit more. Having said that is this still a bad deal if I were to make the cash flow 0$ instead of $-39?

"What would be the terms of the lease option and owner financing? "

I'm not sure what the terms would be, I need more information before I can even consider making an offer. It's difficult because I have not spoken with the seller himself, we are going through the listing agent. We have an appt to see the 2nd house Sat. (we've seen the 1st house) it was in decent condition. 2/3 units are rented the other is currently being updated. I was thinking of paying full asking price for the 1st (via lease option) and trying to negotiate a much lower price on the 2nd. That brings me to another question...When using the 50% rule, as far as expenses go what is included? Does it include utilities for the tenants or is it assuming they pay their own?

Thanks TC, I know I need much further analysis, I guess I was curious if it was worth pursuing. What others would offer. What terms were recommended?

I have found a motivated seller, (he is moving to Florida and really wants to tie things up. Houses have been on MLS for 384 days) They are in a decent neighborhood and 4 out of 5 units have been updated. The 5th unit has been occupied for 6 years, needs updating but tenants seem to be happy with current conditions.

He own's 2 properties next door to eachother. (3 family, 2 family)

Asking price #1 $129,900
annual taxes- $3106
monthly income- $1650
Seller owes full asking price and will do a lease option.

Asking price #2 $124,900
annual taxes-$1665
monthly income-$1150
Seller owns house outright and will do 100% owner financing.

I think (please tell me if I'm wrong) the 1st house is close to the 50% rule, the 2nd does not come close. My question is if the seller is willing to provide financing does the 50% rule still apply? If the 2 properties are sold together the seller is willing to sell at a discount. What do you think...Is there anything worth negotiating here? I do not have APOD yet, I have requested this information from the agent listing the property.

Thanks,
Heather

"'Or best of all, have an executed deed placed in escrow with a limited power of attorney so you can close without ever having to talk to the seller again."

Mike,

What risks does this pose to the seller? Is it difficult to negotiate this? Also, does this make it possible to refinance rather than get a new mortgage?

I'm bumping because I am curious what the answer to your question is.

Just wondering if it's possible to go directly to the bank that owns the property and negotiate better terms. Are they ever flexible. Is it better to get separate financing.

Heather

Thanks Josh,

I've always been a bit naive :)