We apologize, but the forums are closed for new posts. Click Here To Join The Unemployables Facebook Group

Welcome, Guest. Please login or register.
October 05, 2022, 04:32:02 am
Home Help Search Calendar Login Register

Welcome, Guest. Please login or register.
October 05, 2022, 04:32:02 am
Home Help Search Calendar Login Register

Author Topic: You want a Free House?  (Read 4503 times)

Offline Randoskie

  • Member
  • *****
  • Posts: 1282
You want a Free House?
« on: August 07, 2016, 04:04:31 pm »
I have to admit, several times I have had the opportunity to get a house for free or next to nothing.
Now I'm not talking about New York city or San Francisco where you cant buy an outhouse for less than $400,000
In Ohio and Michigan there are some cities and areas houses for free are not a bargain.
Several times I have had houses on contract for less than you wud pay for a 1976 Toyota Celica that's not running.
Nobody wanted them, didn't get any calls, The homeless drug addicts were the only ones that showed any interest and I had to convince them to stay there.
In California it's a different story, it don't matter how bad a house is, it can be half burnt down, and I can sell it and make a good profit.
Anybody have any of those cheap house you cudnt give away?

Offline Bluemoon06

  • Member
  • *****
  • Posts: 3212
Re: You want a Free House?
« Reply #1 on: August 17, 2016, 08:04:26 pm »
I don't buy junk houses but I have bought houses that I got all my money back out of. For example I buy a house with hard money which includes the purchase and rehab.  After the rehab I refinance the house for the total amount.  That house is then effectively free.
Real estate to Retire you
http://sphinxwealth.com/

Offline Randoskie

  • Member
  • *****
  • Posts: 1282
Re: You want a Free House?
« Reply #2 on: August 18, 2016, 02:12:20 pm »
I like your analogy, once you refinance and pay back the hard money and any fix up costs, then rent it out for more than the mortgage amount, after tenants make all or most of your payments you have a free house. Sounds great, I want in.
Rando

Offline Redstar1324

  • Member
  • *****
  • Posts: 1000
Re: You want a Free House?
« Reply #3 on: August 18, 2016, 02:36:06 pm »
I don't buy junk houses but I have bought houses that I got all my money back out of. For example I buy a house with hard money which includes the purchase and rehab.  After the rehab I refinance the house for the total amount.  That house is then effectively free.

But didn't you have to pay a down payment on the hard money loan? I've never seen a hard money lender that lends 100%. If so, tell me the name of the company.

Offline Randoskie

  • Member
  • *****
  • Posts: 1282
Re: You want a Free House?
« Reply #4 on: August 18, 2016, 02:50:17 pm »
I don't think I am the only one getting irritated with all the questions. But this is a good question.
I believe how it works Mr Redstar, is, find a house with a distressed seller for 60-80% of the full value.
If you get a 100K house for 60K because it needs some fixens, the hard money guy will loan you 80K
Then with the 15K you have after closing and Hard money points you put in new carpet and paint and some flowers in the front.
Then refinance for the balance you owe and wala, you got a house with none of your own money.
At least I think that's how it works.

Offline UpwardMindset

  • Member
  • *
  • Posts: 1
Re: You want a Free House?
« Reply #5 on: August 21, 2016, 01:43:23 am »
Note to self! Ask questions but follow through. Do not persist in annoying the community because they can become hilariously slappy happy! Seriously Red, good luck I'm new at this and the toughest part is just overcoming the stumbling blocks especially the ones we create ourselves. However that take action statement is a theme that I've been hearing consistently. One has to engage the market otherwise how can you gain the experience needed propel yourself forward. I have to admit I like your persistence to get the answers you are looking for. Being persistent and flame retardant are admirable qualities :-) The rest you guys are giving solid and good information and I appreciate it because it's fortifying me.
Especially Randoskie, comments on Bird Dog recruiting..very helpful. Anyway, that's my 2 cents.

Peace.

 




SMF 2.0.15 | SMF © 2017, Simple Machines