How Can I Get Money Out Of This Property?
Here's the scenario,
I have a property under contract that I have trying to wholesale to people around my area. Unfortunately the people I have been working with have been unable to finish the deal. The property was appraised by appraiser at $90,000. I have the property under contract from the owner for $45,000. It needs about $4000 in work done to it and it rents out nicely.
Since I don't want to keep waiting around, what can I do to purchase the property and instantly take out the equity in the property to use to fix it up and then use the rest for other properties asap?
I may have private investors that would be interested in giving me the money, but have never used a private investor before so not sure where to start.
Thanks,
Christian "The Solutions Kid" Beebe
[addsig]
what are you wholesaling it for? if investors could make some money off of it, it shouldn't be a problem.
If you used private money, you might not be able to rent it given that the monthly payment may be too high. most private lenders want 15%-20%. If you have other properties you could possibly leverage them.
have you tried to sub to it?
Good question, but for some reason people haven't reponded, so since I know it is a a good deal, I figured I would just purchase it and then rent it out, but really am interested the equity in the property.
Can not sub 2 because she does want some money from the deal.
[addsig]
assign it to someone for a quick 10k
my $.02
[addsig]
That's what I've been trying to do, but for some reason no biters. Will keep on trying, but like I said, knowing what this property can do, I'd like to find out about purchasing the property and then taking some equity out, etc.
[addsig]
If you buy it clean it up and put in a good tennant you could sale it to an RE investor who does not like to to rehabs. You could make a few more dollars this way. But you will have to lay some out to make it. BTW what is the market rent?
As for birddoging how much of a fee are you asking? My math shows that 10K puts you over 65%, thats to high for a rehab. Even a quick one!
Are your repair estimates correct?
Are you sure that your dealing with real investors or I want to be one but this fence feels so good types?
The market rent is $650 a month.
I thought 10k was a great deal for something with little to no major fix up, plus with $30,000k in equity.
I will try some more at 10k, then I will drop it down and see what kind of investors I am working with. Unfortunately, there is a lot of FBI activity around here due to illegal "flipping" loan fraud so people are somewhat scared of doing any assigning, even though it's legal.
Over 65%...Even if I offer it at $55,000, that is exactly 65% ($85,000 x .65 = $55,250) which is why I thought it was such a good...which it is.
I really didn't want to mess with renting with this property right now, but if I can find a way to get the equity out in the beginning, then I will buy it and rent it out.
Thanks
If you buy it clean it up and put in a good tennant you could sale it to an RE investor who does not like to to rehabs. You could make a few more dollars this way. But you will have to lay some out to make it. BTW what is the market rent?
As for birddoging how much of a fee are you asking? My math shows that 10K puts you over 65%, thats to high for a rehab. Even a quick one!
Are your repair estimates correct?
Are you sure that your dealing with real investors or I want to be one but this fence feels so good types?
[addsig]
Quote:
On 2003-11-02 20:11, SolutionsKid
Over 65%...Even if I offer it at $55,000, that is exactly 65% ($85,000 x .65 = $55,250) which is why I thought it was such a good...which it is.
I am a rerhabber so I look at all deals from that angle. So I will show you how your over.
90,000 X .65 = 58,500
58,500 - 4,000 (repairs) = 54,500.
54,500 - closing cost = the max I would pay. If it was a bigger rehab I would also subtract 6 months of holding cost.
How about doing something like this...has anyone ever done it?
1. Add your name to the seller's deed
2. Refinance the property - Have a lender will allow this because they consider you a owner as long as you are on title
3. When you close, they pay off the existing mortgage and take the sellers off the deed.
4. Deal done - Cash to Me
Any ideas or suggestions?
Christian "The Solutions Kid" Beebe
[addsig]
I don't like that one.
If I were a seller, I would think your crazy. I'm no expert but that looks like fraud. I would stick to a littler more LESS creative ways of doing this deal.
Yeah, wasn't real sure about that one, but it was something proposed to me and wanted to run it by people to see what they thought or knew of someone who had done this before.
[addsig]
Sorry you were picked on. One of the things you have to do as an investor is to establish a list of buyers and money people. Important.
Jesus is the way the Truth and the light
sounds like you have a lot equity in the place, get a hard money lender to finance. You're paying less that 65 LTV, so it should be hard to find a HML or Private lender to finance the repairs and costs. Or you could do owner financing. Find a buyer, finance them, carry back a 2nd mortgage and sell the first note at the same time (i.e. simultaneous close). You can sell the property for much more if you do it this way. Hope this helps.
Dee
Quote:
On 2003-11-02 19:07, SolutionsKid wrote:
Can not sub 2 because she does want some money from the deal.
It still sounds like a possible sub 2 to me even if she wants some $$. You could:
borrow funds to pay her,
find a partner who has the money and split profits with him/her when home sells,
have her hold a note for her equity and make payments to her,
have her hold a note for her equity, but she doesn't get any funds until you find a buyer who refinances.
This is route I would go. More profit in it for you than flipping it.
[addsig]