Please Help! Ideas Needed
I have my eyes on a 4 BR brick house that a flipper is offering for 54k. I have done a CMA on it and feel it is worth 85k. It can rent section 8 for 766 per month and can probably fetch 850 on the open market.
I would like to buy it for myself, but I do not have the available financing needed for a quick close. Does anybody have ideas about how I can finance this?
Also, I am giving thought to buying it and reselling it and carrying the paper. How should I structure the note so that I can resell it? What interest should I charge? Terms? Etc.
Any other ideas would be appreciated.
Thanks,
Steve Rosenbaum
Virgina Cook Realtors
Steve,
If your numbers are accurate, you can use hard money (we have a page with some folks listed if you go to the Home page).
That would at least solve the purchase issue. Then you can either sell like you mentioned or refi and keep.
My note selling is all theory, but I have several friends and acquaintances in the biz. Their preferred purchase is to have it structured into two notes with the first not being more than 80% of the value. They buy the first at a slight discount and you structure the other 20% however you want.
In other words, you could have 10% down and a 10% second. You can crash the rate on the second note to allow for a higher rate on the first for marketability. You can take 5% down with a 15% second, etc.