All Forum Posts by: John Ratigan

Hi,

Have a deal in place, price is agreed, owner will carry, everything is good as far as terms.

They want me to sign the contract and include the 10 percent down with it on the same day. They live out of state and are wholesalers. I told them I want to give them about 500 earnest money with the contract signed today and the rest will go to escrow with my title company to be paid to them at closing.

They said this probably wont work for them, but didn't elaborate on why except to say that they want 10% EMD. (I.e. the same amount as the down money) He also mentioned that I am getting a deal below ARV as if that implies I should pay more earnest? If I hand these guys a check for 13k today with the signed contract, I don't think that is safe but am I over thinking it?

They want me to sign contract, they sign it, then I pay down money all in the same day. They live far away. The title insurance does show that they are the owners and was purchased 3 weeks ago.

that garage is an eye sore. need to tone that down.

do this:

add shutters to the front window, match that color with the garage and front door paint.

it needs one mature plant, ideally, something with color (blue evergreen garden variety (dwarf size).

nice buy. ideally, garage door could be made to look like a wood stain, and shutters match.

if anyone could help me with HELOC,

I bought my home for 250k, it was appraised for 275k, I closed 4 months ago.

Does this mean I could apply for a loan of 90% of 25k equity? If so, would that prevent me from taking out another HELOC after I paid it back?

Thanks.

Lease with an option to buy contract deal....

So I tried to get seller financing but the seller owes a lot on the mortgage still and plus, for some reason, the seller is paying a very high monthly payment (2200/month)

When I first contacted them they told me they were extremely motivated because they had a divorce and the seller left the state.

I offered the seller a 30 year seller financing option that would pay her like 1200 a month. She immediately was open to seller financing until I told her the amount they would get per month, when the seller told me the bombshell price they were paying per month.

So the deal sort of died. But the seller contacted me with an offer that was this:

...

Lease Option contract
20k down and will apply 200 a month toward principal.

Sale price 310k. It's worth about 340k. As I mentioned I have a written appraisal from 2011 at 330k.

Payments 1800/mo

You are 100% responsible for property.

(I had it rented at 2400/mo)

..

Keep In mind the house is nice and new construction type but its not a single family, it is a twin house. a luxury one, at that.

I don't really see what the advantages of this deal would be for me because I would have to buy it probably within 2 years and I would need 20 percent down payment which is around 60k and I just don't see saving that amount of money in 2 years, right now I have less than 10k liquid cash.

Before I walk away from the chance to at least be in the drivers seat to own the house, I was wondering if you guys thought it was a deal or just a way for the seller to unload. Keep in mind, If I can't get the down money and say she wants me to buy it in 2 years, Id simply lose the house and the 20k and the 1800/mo 'rent'. The positive of the deal would be I could cash flow a little bit off it for a couple years and somehow convince a lender to loan 350k to me when I really only make 50k a year but have no debt.

What isn't stated is how long the contract would be, but I assume no more than 3 years. That gives me 3 years to get a loan on the house. I have zero knowledge if banks or lenders would even care that I am renting it out and show it is a cash flowing asset. I assume that would help, but that it simply comes down to my debt to income, and what my income is. This lending environment is extremely tough, my Uncle has told me about 10 years ago when he was doing 40 deals a year. It's crazy how hard the lenders are and also the hard money guys are ruthless. End rant, haha.

I think the main problem with this deal is that the going rent (2400) per month, is only 200 more than the sellers mortgage. So there is zero wiggle room.

I asked if she would accept an offer for the balance of the mortgage, she refused. Also would she be open to having me take over the mortgage, refused. Not sure Id even want to take it over but I would at least control the asset.

If you have any counter offers suggestion or just think this deal is worthless, please. tell.

Thanks guys.

fair point, but, i've read on here about people using credit union loans as down money, perhaps, i misread, and they were using signature loans.

just wondering, on a bigger picture, how people get down payment money when they have nothing saved and no partners.

Hi,

I was wondering, how much lending do you think I could get from credit unions?

My fico is 800, I make 45k, my only debt is my mortgage but I have someone who lives there with me and pays rent, which actually nets me 400/month. 

So my monthly income is around 3400/mo. 

I was wondering, what would a credit union lend to me or heck, a bank, and also, what is the interest rate on that money?

For instance, i'm looking for maybe 100k if possible, from multiple unions to get some down payment money. 

The problem for me in doing any deals thus far is the down payment money, and people are just so tight that owner financing isn't even an option in this economy/market in my area. 

Thanks guys

what Joe just said is probably the best advice you can get. use the 3.5% money down to buy a rental property and live inside one of the units. 

one word: bulldozer

Joel, amazing story.

I'm sorry if this was already mentioned, but how much down % and what is the interest % and is it a balloon or 30 year fixed? 

Congrats my friend, what an inspiration! 

hey, the important thing is you ADAPTED, you were able to change on a dime, adjust your strategy, rent it out so that you could maintain. that's beautiful. welcome Joe.