Numbers - Whats Better?
I know it depends on the buyers situation but what do you think is better.
purchase price $205,000
scenario 1:
$205,000 financed at 6.7% for 30 years.
scenario 2:
$195,000 financed at 6.7% for 30 years.
seller carry of $10,000, 0% interest, 10 payments of $1000 starting 4 months after closing.
scenario 1 would require me to use another property as collateral. scenario 2 would not require the other property as collateral but would eliminate my cash flow for the 10 months of payments. THanks.
Mathmatically speaking,
If you can pay the $1000/mo for 10 months.
Option 2- $195,000, is clearly your best bet, hands down.
Before you start trying to get folks to call you (or you calling them) I would suggest that you get some more training at your local real estate investors association or buy a couple of good courses. I really like ron legrand and lou brown. Get an understanding of their methods first, then jump in.
[addsig]
""Same thing in scenario #2. House was in MLS for $300,000 and we offered less, got turned down and next day went up to $350,000 and sold at that price. What am I missing here?""
??Why do you think that is smarter than you??
I know this guy and he has tons of property. I guess I want to know WHAT is happening that he is buying a property for more that what it was originally listed for. Why does he buy it and price jump it to buy?
Where the home really worth 240K and 350k?.
I would call the realtor and ask about the number offers, price range, etc.
""More than likey to get cash back at closing or qualify for a loan at a lower ltv. ""
It really doesnt matter, its some appraisal scam to cash out or he just loves elected officials and wants to pay higher property tax. Either way, it doesnt seem like hes too bright.
I really dont think you want to do what this guy is doing...unless of course, you need to unload a bad home loan or something.
look for better mentors, thats my advice