Creative Anwsers Needed
My mother is letting me buy one of our family properties and i am in need of some creative sugguestions on how i can obtain the property without going the traditional route and without any money being put down, and i also want to pull some money out along with the deal for the repairs and once that is done i wanted to rent it out to section 8 at $1250.00 a month. My mom ,as part of the deal made me promise to keep the house in the family and not sell it.. Now i will give you a little info on this property.
Selling Price=$100.000
Appraisal came in at = $179.000
15K in repairs
I was thinking of hard money but am not sure if i can get money back with that kind of loan . if that is the case i figure i can say that i am buing the house for more and have my mom give me back any money over $100.000.
If more info is needed on the property i will gladly post it at your request
don't run to hard money lenders right away. These numbers look solid enough to be bankable. What does your credit look like? Are you sure about the Section 8 rent? Are you in a hurry here?
The easiest way to do this is to have your mom refinance for around $150,000 and then sell it to you subject to her existing mortgage. You take the extra money for the repairs and put a nice profit in your pocket.
Mom might object if she's afraid you won't pay the mortgage. In which case she could front the repair money and sell it to you on land contract for a year. At then end of that time you can refinance for the $150,000 assuming your credit is reasonably good.
The diferene btwn the 100 & 170 is going to be a tax issue to be looked at
I was thinking of hard money but am not sure if i can get money back with that kind of loan
I didn't foollow, they worry about gettingn thier money back.
If you stick the 65% ltv for hsrd money, you dhould be able toi get 116.35
Commercialking...I am sure of the section 8 rent and i am in a hurry to do something. My mothers credit is not good right now as she was just turned down for an equity loan about a week ago. As far as my credit i have a few bills to pay off first then i be able to get my own loan plus as i said i am in a hurry to do something.
Esaeed the Mortgage Type speaks the quick and proper way. Very correct I would follow it to the letter.
This is the moment to start laying out the tracks you are going to follow. As to Section 8 Tenants. With great care. You may prefer to stay above and work with a more deserving tenant. Also I would stay involved in the fixup. Now is the time to learn a few things. Also be sure your loans are all for at least 20 years cause the times they are a changing. Just to grab a few bucks at this time in your life and stick a big ballon in your future does not make sense.
Check your credit and no fair spending this money on goodies for yourself. This is capital handed down. It is sacred. I still have the ten dollars I inherited from my mother. My sister got the diamond ring and the lifetime pass to the Chinese Theatre. Ah well. Lucius