All Forum Posts by: James Klafehn

Thank you for your input.

I can send you the one that I use.

Email incoming.

Im not sure exactly what you are asking. Have you found a property yet? Are you planning on going into business with this friend of yours? Are you set on a rehab? 

With $6k I would think you could buy something pretty decent. I have no idea where you live or what your market is like but if you have decent credit you could get an FHA loan with 3% down. That would get you a $200,000 house. What are $200,000 houses like in your area?

You could contact a local real estate agent and get some free advice. Tell them you are considering listing the property and you are wondering what he would list it for. That will help give you an idea of what it could fetch. Thats the easy way.

If your willing to put in some work you could go to your county assessment office and look at comparable properties. See when they sold last, how much they are assessed for etc.

For those of you who use ads on Craigslist to look for houses to buy, I am wondering what text you use. 

I am looking for local properties to purchase. Fixer-uppers all the way up to complete multi family houses. 

Please share what text gets you the most responses.

Thanks!

Hello Curt,

Thank you for your response. Your right an unsecured loan would be difficult. The only option may be an owner financed second mortgage. Although, again, I have never done one before. Owner financed anything is extremely rare in my area. Many rentals and houses go for top dollar and to cash deals. The Ithaca area has gone no where but up for decades.

Because I am hoping for minimal cash out of pocket I looked up FHA loans which I used successfully to get started in real estate. According to FHA, the lending limit for a duplex (maybe this will qualify for a duplex) in my county is $347k
http://www.fha.com/lending_limits_state?state=NEW%...

I wish I had more money to put down but 10-20% is going to be extremely difficult if not impossible. I have maybe $15k in cash and I could use low interest credit cards for more possibly. Again, Im not worried about cash flow because I am good there. I just need to get my name on the deed some how.

Hello Everyone,

I have found an AMAZING estate that I would like to purchase for myself and my family. My previous 3 houses have all been multi family. This will be my first primary residence.
The property consists of a main 5 bed/3 bath house, a guest 2 bed/2 bath house, and a 4 car garage/workshop all on 190 acres! Normally something this large is out of my league but I am trying to make it work because it is a very rare property in my area. It also happens to be EXACTLY what I have been looking for for quite some time.

My problem is that I have leveraged each of my properties as I went along (pulled equity out of one to buy the next) so I don't have much available equity for a down payment. The investments I have made are earning me great cash flow but I simply do not have a large amount of capitol sitting in my bank account.

I already asked for owner financing but the retired couple owes money on the house so they cannot hold the mortgage for me. They need cash to pay it off. I am hoping to work out an 80/20 loan and maybe get out of the deal with little money down.

Here are the details:
Assessed value: $670,000
Asking price: $655,000 (just lowered from $730k, owners are "highly" motivated to sell)
They seemed to like my purchase offer of $590,000 when I proposed an owner financed deal. My agent says he thinks I may be able to get it for even cheaper. I offered $120k down for an owner financed loan for 15 years at 4.5%. It was denied only because they need cash to pay off "bills". I only have $120k to put down if a business loan I applied for goes through. So $120k may or may not even be possible, I definitely couldn't put MORE down.

Now, I am now hoping I can arrange a deal in which I obtain a 30 year/$416k mortgage through a local bank, (I was told the cutoff for a jumbo loan was $417k) and have the current owners finance the remaining $174k for 10-15 years.

My questions:
How do 80/20 loans work?

Can I tell a bank that I am getting this property (which is assessed at $670k) for $416k then get an unsecured loan from the seller for $174k and hopefully dodge any down payment?

Do you think a bank would still require a down payment if I was purchasing a property for $416k when its assessed at $670k?

Any other pointers would be greatly appreciated!

With my cash flow I will have no problem making the payments. I just need to convince the banks and seller to give me the property, which of course is the hardest part!