Receiving Land Contract Offers
I am trying to sell one of my properties that need a major rehab. ($50 to $60K) I am over the top with what I owe. However, if the property is converted to 3 units, it would produce very good value. A couple of people came to me with a land contract offer to purchase. Is this a good idea? What terms or guidelines should I set? Am I supposed to get some kind of downpayment? Am I still stuck with the mortgage on my credit and when will I get bought out completely?
Yes. A land contract is where the person gets full ownership once the entire balance is paid in full. The building can be rezoned to be 2 units with a garden apartment.
You might consider speaking with me. 8-)
I (we) too live in NYC ((part time)) and own in Buffalo, NY.
The market there is isdeal for folks like you getting started for several reasons.
*LOW BARRIER TO MARKET- Prices are compelling relative to national average and houing stock
*COMMUTABLE- 1 hr flight from NYC, or 6 hr drive.
*SOFT BUYER MARKET- Although you should hurry 8-) This meansd you as a buyer get great deals on best stock. 2 reasdons alot of stock, not as crowded of a buyersd market.
*HUGE CASH-ON-INVESTMENT RATIO- Both in terms of TROIT(time return on investmet), ROI (actual return on investment, NOI (net operating income).
*SUBSTANTIVE RENTAL MARKET- Many renters, directed markets ((ie student housding or Section8))
*MANY MORE.
Particularly given your background it might make sense for us to speak. We own an operate 16 units in Buffalo, NY.
Best Regards,
Joel
Good Starting
dude its not that hard. go out and find good deals and call up some rehabers and ask them if they would want to buy it for x. get the prop under contract as if you were going to buy it and tell them you need an inspection or something and then flip the contract to another investor. sned out letters to people, put out we buy houses signs, knock on doors, do whatever and find really good deals and then go get some rehabers to buy them
Here
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Some lenders will do 10-20 % depending on how much. However, they will want to have the first lein. If that is the case - see if the owner will take second position. (honestly I doubt he will, but worth asking)
Depending on how much we are talking here - tried a unsecured loan?
How about credit cards?
When doing this make sure to take into account the addition payments when calculating cashflow.