All Forum Posts by: Raju Pothuraju

Doesn't it get cumbersome to keep moving every two years? Also 5% seems low for a conventional mortgage… most require PMI if less than 20% down?

Just writing out loud (maybe it will generate more legitimate ideas from others):

It seems to me like Land Contract - you take over a master lease for a specified period of time and usually you have to pay something to take over the use of the property for some period of time contractually. But you should be getting the income too. So you have to consider how much would you have paid for a land contract and compare that amount with the monthly expenses and see if they are within ball park of each other. If they are then you look at this like a land contract with an option to buy at the end of the period?

Counter him with if you pay for the monthly expenses - you would keep track and then deduct it (all the expenses you paid for - not the upgrades) from the purchase price?

 You could do a Contract for Deed with a wrap around mortgage and have it setup to automatically transfer the title after the terms are met. You would still be on the Title until the terms are met. This option may increase your pool of buyers. You may have to have a lawyer involved that would do this and offer a Trust service that automatically conveys the property when the buyer gets a mortgage on it and pays off your loan.

@Christopher Telles would it be finance fee if the upfront $5k or so on a property that has equity is used towards the principle of the purchase price loan? It would be more like a small down payment?

@Christopher 

@Christopher Telles I would say roughly $388k is the property value, and it is only a $48k discount. I agree with you on pass it by... for now

She needs another month or so to come to grips with reality and then come to me begging to take the deed and finance the property for me for $5-8k.

i will add to your points d) the property needs some cosmetic work (paint and flooring).

Thanks! I guess i really wanted this to work out as my first no bank deal in an A grade location even if it is for primary residence but I have to wait till the fruit ripens.

@Account Closed Thank you! I am at 660 -680 range on credit score. The good old days of credit card hacking! excellent idea.

another idea is get some cheap labor , cheap laminate flooring, and some elbow greece to just replace the rental flooring from carpet to hardwood for the absentee landlord for a grand or two and call it day.

@Account Closed Good question! this is for our primary residence with only $30k below market due to allergies for my son - we are renting in carpeted unit that the landlord is not willing to change (understandable) and central location to everything for our family. So this will be more of a house hack - rent the basement with its own bath to a university student.  Once I get the deed I can refinance and pay the same as what I am paying rent... 

Goal - to finance this purchase without a bank.

puzzle piece number 1 - 130k loan (not assumable) that the seller is ok for a subject to

puzzle piece number 2 - seller will not budge for price to be $340k not even closing costs split

puzzle piece number 3 - wants $40k cash for her to seller finance the rest of the 340k

solution 1 - borrow $40 k from private lender? can be challenging with my limited network

Is there another way to make this deal work without a bank finance?

@Char Prado Thank you! I will keep you in mind and like wise keep me in mind for any you may want to pass on.

I put it on my profile at my work under hobbies: real estate investment.