How Can I Get Money Out At The Close?
I have located a property with an appraised value of $375,000.00.
The seller is willing to take back a second at 6.25% the amount is not clear at this time.
The price I am offering is $337.000.00 which will give me an approximate equity position of $38,000.00.
My credit is decent, but I have no cash, I would like one percent financing, if I can get it.
The property is free and clear, so there is no first mortgage to assume.
How can I get the $38,000.00 out at the close?
Thank you for your help.
Sincerely,
jill <IMG SRC="images/forum/smilies/icon_eek.gif"> <IMG SRC="images/forum/smilies/icon_frown.gif"> [ Edited by jill on Date 08/23/2003 ]
If you have no cash then the second is a moot point, unless you can get a no money down loan. Just be careful that you don't get in over your head with your monthly payments. Otherwise, people on this website will buying your house at the auction block.
Good luck
Is this a rehab?
And, are you trying to get cash back to fund the rehab?
Is, your intention to keep the property? If you're trying to get CASH out of it... Then, seems to me like you want to FLIP it... In, that case, perhaps you want to post this message in the SUBTO FORUM. As, this would seem to me a "picture perfect" candidate based on my interpretation of it (subto)...
What you can also do if your plans are to do a quick flip, try any lease option and ask for 10% down option considaration from a new buyer (which is your equity) being that ther is no need to qualify for that new buyer, you will flip quiker than looking for financing your self. which is your equity. So in other words someone else paid you down payment.
Hello Jill,
I can not see how you will be able to pull this deal off. I can not see how a mortgage company will loan you the first mortgage without your showing a history for the down payment funds. True a few mortgage companies will make loans that do not require one to show where the down pay came from, but you will have to have good collateral and salary base to back it up.
What are you basing this 38k instant equity on, have you had the appraisal order already. You must ask yourself, why would the seller offer to carry a second mortgage at 6.25% for years unknown and still allow you to make 38k off the table? I would not do such a deal if I were the seller unless I was just discounting the property for a quick sale and was making double what you are getting on this purchase.
To be honest I would look out for the hook on this deal. All money is not good money. You can make money on one end of the deal and lose your butt on the other. You did not provide a lot of details as to your plans for this property. I trust you have worked it out with the numbers. Hope it works out for you.
jill,
YouCan't....but that being said...
....maybe this might work...>>>
The property has to be OwnerOccupied and YOU have got to have 700+ scores.
"I have located a property with an appraised value of $375,000.00."
OK...
"The seller is willing to take back a second at 6.25% the amount is not clear at this time."
Have them hold a 1st...amortized for 30yrs. with a balloon in 3 yrs.
"The price I am offering is $337.000.00 which will give me an approximate equity position of $38,000.00."
Forget the equity until the REI is seasoned .
"My credit is decent, but I have no cash, I would like one percent financing, if I can get it."
ItBetterBe!! If you mean 1% for ClosingCosts...forget that..more like 3%maybe.
"The property is free and clear, so there is no first mortgage to assume."
More than likely, if there was one, it would not be assumeable anyway.
"How can I get the $38,000.00 out at the close?"
Not at the close but after the REI is seasoned...do a Refi. for 110%+ of the appraisal you get at the time.
Pay off The1st...pocket the difference
There is another way ...TO GET 38K NOW...
but YOU said you have no money and
YOU WOULD NEED MONEY to get MONEY.
That's how I see it...
...as always,
GoodInvesting, Rocky