Any Experience Investors???
I am from NYC. I have a question for experience investors. What is the point of a down payment when you are closing in two weeks?? Agents are contantly pushing for a 20% down and I just want to put $500 the most.... Any suggestion??
if you don't have 20% invested you have to carry mortgage insurance.
Tell us more about your situation please.
Are you talking downpayment, or earnest money?
I am talking about the earnest money. What will be a considerable amountof earnest money to use in NYC.???
20% earnest money? That sounds way too much. I would have thought a few thousand at most would be fine. I don't know the NY market though.
But how much you agree to put down is up to you. And then it is up to the seller to decide if they want to accept it.
Earnest money is to bind the contract and show you are serious. I never put more than $100.00 for the most part. Now the down payment with the Purchase and Sales contract, that a different story.
Eric
[addsig]
I don't believe there is any institutional money available for non-owner occupied with only $500 down. 80% loans are very traditional which is likely why you are hearing that.
I will also echo what others have said.
Are you confusing down payment with earnest money?
20% Earnest money is VERY high.
Of course, realtors and sellers want the most they can get.
Depending on the price of the property......I would think .5 to 1% would be more than suffice. The other thing I think of, as a seller, is if I am taking my property off the markert for a monthand the buyer isn't able to get his act together I will be out another months' mortgage payment. I like earnest money to be at least enough to cover the mortgagepayments during the period I am waiting for the buyer to get to closing.
[ Edited by 64Ford on Date 12/01/2003 ]
I have never put down more than a $1,000.00. This is a godo amount so that the listing agent knows you are serious.
20% down is ridiculous. That is required so you don't have to pay for PMI. Do a simple 80/20 loan to rid yourself of PMI, have the seller contribute to your closing costs, make sure the mortgage company charges resonable fees and you will come to the table with very little.
Good Luck!
Nine times out of ten we only put $100.00 down as earnest money.
Thanks,
OnTheWater
New york operates very oddly. If you dont have to put 20% down to avoid pmi. Then try to avoid it! Usually, the brokers requests for pre-approval letter w/ 20% down. Try this, ask your financial institution to fax them a mortgage committment. That way they see that you are serious about the purchase. With that at hand, your earnest money at most would be 1-3 % of the purchase price as the earnest money. If that still doesnt work, let me know. I have other ideas that may work.
Hello, I own a National Mortgage Co. and I can do NOO homes with no MI Insurance and upto 100% To answer the persons question, you don't need 20% down at all if they are telling you this walk now!! Those of you who are interested in using a good lender who is a investor himself call me.
Thanks,
763 479-2475
Dear Friends,
Sometimes in the larger citys I may find myself with others bidding against me to buy a property. So I go forward with an offer check which is "Short Stringed".
Suppose an apartment house with a series of shops on ground floor, some offices on the second floor and the rest are residences varying from five or six on a floor to the top floor where the Goniff of the Meat dealers has the entire www.floor.Now thats a penthouse. Yellow,Green and Red walls, the furniture from Grand Rapids but he thinks it is all Italian imports. His parties are something, ninty percent hookers and the other ten percent wannabees..
To protect myself I wore a Clerical Collar and called all the girls "Child". For awhile I thought Father was my first name.
My offer goes forward and to impress the Seller, make him think I use $100 bills for sanitary occasions, we attach a check for $400,000. The Seller sees it thinks he has the Snor of all times and takes our offer which has in it the really correct figures as to how much cash will be required. What the Seller does not know we have bought the Third Trust Deed. The lender thought the property was going to be condemned. What an inspector will say or do for money. So he quickly dumped it on us. The discount was unbelievable.
The big check got the deal and the others waiting in the wings flogging their Brokers to offer are informed, they are out of time.
Our subsequent sale to the nice man on the top floor with the garish taste and women to match, went well and all the rental/lease deposits were credited to our purchase amount. By a rather interesting assignment they were credited toward the downpayment as they became non refundable considerations on execution of leases and rental agreements.
So sometimes you do things not exactly the way you should. After all is not this the Creative Investors Site??
I luv New York Lucius
Quote:
On 2003-12-03 04:32, Lufos wrote:
Dear Friends,
Sometimes in the larger citys I may find myself with others bidding against me to buy a property. So I go forward with an offer check which is "Short Stringed".
Suppose an apartment house with a series of shops on ground floor, some offices on the second floor and the rest are residences varying from five or six on a floor to the top floor where the Goniff of the Meat dealers has the entire http://www.floor.Now thats a penthouse. Yellow,Green and Red walls, the furniture from Grand Rapids but he thinks it is all Italian imports. His parties are something, ninty percent hookers and the other ten percent wannabees..
To protect myself I wore a Clerical Collar and called all the girls "Child". For awhile I thought Father was my first name.
My offer goes forward and to impress the Seller, make him think I use $100 bills for sanitary occasions, we attach a check for $400,000. The Seller sees it thinks he has the Snor of all times and takes our offer which has in it the really correct figures as to how much cash will be required. What the Seller does not know we have bought the Third Trust Deed. The lender thought the property was going to be condemned. What an inspector will say or do for money. So he quickly dumped it on us. The discount was unbelievable.
The big check got the deal and the others waiting in the wings flogging their Brokers to offer are informed, they are out of time.
Our subsequent sale to the nice man on the top floor with the garish taste and women to match, went well and all the rental/lease deposits were credited to our purchase amount. By a rather interesting assignment they were credited toward the downpayment as they became non refundable considerations on execution of leases and rental agreements.
So sometimes you do things not exactly the way you should. After all is not this the Creative Investors Site??
I luv New York Lucius
How is the market in CA? i will suppose is more like NYC, Our avg single family is 250K-350K. Maybe that's the reason agents are aking for high earnest money.
Quote:
On 2003-12-01 23:02, 64Ford wrote:
20% Earnest money is VERY high.
Of course, realtors and sellers want the most they can get.
Depending on the price of the property......I would think .5 to 1% would be more than suffice. The other thing I think of, as a seller, is if I am taking my property off the markert for a monthand the buyer isn't able to get his act together I will be out another months' mortgage payment. I like earnest money to be at least enough to cover the mortgagepayments during the period I am waiting for the buyer to get to closing.
<font size=-1>[ Edited by 64Ford on Date 12/01/2003 ]</font>
i agree 100%. I used to put no more than $100 in Maryland. I've just started in NYC and I don't understand why the agents keep telling me that my offers are not being taken seriously due to the earnest money deposit.
You can put as much or as litte earnest money down. If you only want to put $100 , and the agent wants you to put more; tell them you want the seller to match anything over $100 in case the seller backs out. That will usually keep them quite.
Okay ,you want them to put down enough to cover the mortgage payment . I thought you were not suppose to spend this money, isn't this like an escrow? Maybe I am wrong?
Control the deal and create your own terms. For a closing in two weeks, this is an all cash deal, so earnest money of any amount is reasonable in our eyes.
Eric & Rosa
[addsig]
Thank you ALL,
Your feedback are well taken. I feel more confident and in control about the type of earnest money i would like to put down with my offers.
See you ALL at the TOP!!!