All Forum Posts by: Joseph King

That would work, except I just want to simplify the process overview. Your private lender will have to deliver 20k cash at closing to pay the down payment to the seller. Your title company attorneys will be drawing up a deed of trust and promissory note (1st mortgage) for the 80k seller financing loan and then a 20k ( 2nd mortgage) Promissory note for the 20k with your private lender. The reason is the seller would not be willing to take the 2nd mortgage since they would lose first rights to foreclose if you defaulted on payments. The smaller lender usually takes the 2nd place. Since this is all private/ seller financing, its up to you to negotiate the terms of financing with your counterparts. There is lots of nuances and ways to negotiate the best seller financing terms, so I suggest you post back when you are close to a deal and hit up the BP community with sample terms you are thinking about to see if your seller financing terms are considered good. Can you get the seller to agree to a long term, low interest rate, perhaps 2 month grace repayment period after closing to perform repairs and place paying tenants, and other benefits? 

When I buy a property I talk to neighbors first.

I walk and drive the neighborhood

I don't buy in War Zones!

But $15K does not mean a war zone (It could be but not necessarily so)

See my thread where I'm attempting to answer in detail all questions people have about Detroit and suburbs.

http://www.biggerpockets.com/forums/311/topics/198698-detroit-and-michigan--1-defender-answers-questions?page=1

All units rented. Are all paying or are they professional tenants?

Nothing rents for $200 in Detroit.  Look on Craig's List.

Stay out of the war zone!

I would suggest typing "Detroit" into the BP search bar and you will be able to spend days reading about investing in Detroit.  Read everything Jay Hinrichs has posted about Detroit.  

Units only rent for $200?  What part of the city is this property in? 

People on here debate  the pros and cons of investing in Detroit all the time.  However, if you live out of state and want to invest in what I assume is a low income area of Detroit, and are completely new to real estate investing, I would rethink that strategy.

What kind of condition and what kind of neighborhood is a 17 unit apartment building that is only selling for 125k?  Just curious. 

What kind of condition and what kind of neighborhood is a 17 unit apartment building that is only selling for 125k?  Just curious.