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

Welcome, Guest. Please login or register.
December 04, 2021, 08:31:24 pm
Home Help Search Calendar Login Register

Welcome, Guest. Please login or register.
December 04, 2021, 08:31:24 pm
Home Help Search Calendar Login Register

Author Topic: I got a 78 Year Old Bird Dog  (Read 11950 times)

Offline javipa

  • Member
  • *****
  • Posts: 2350
    • Profitable Investing Strategies
Re: I got a 78 Year Old Bird Dog
« Reply #30 on: October 24, 2017, 09:47:51 pm »
I don't understand.  Is the seller a private party, or a bank, or both?  What's their age have anything to do with anything?

If the property is free and clear, the seller can be 'way' more flexible in how they get their money than what they've offered here.

Why put 20% down, and then pay $6,320 interest, and then invest another $20-30K down to fix the place? 

I mean that's like investing 40% in the property.  Forget that.  It's better to drop the price another $20K and cash them out, then to fiddle with a no-leverage hell hole with very little upside.  It's like trying to juice a rotted lemon.  Sure, something will come out, but ick.

Why?

If I just wanted a portfolio builder, I would make a net offer to the sellers, if they agreed to bargain terms. 

Obviously, they wanted cash, but they also wanted too much cash.  So, now they've got to settle for cash-flow.  Well, they get cash-flow, and that's all they get at this price.  So, I offer full price, no down, 4%, 30/yr/fixed, all due in 120 months.  This way, I can afford to overpay, and I'm only putting up one down payment, not two.

After all is said and done, the sellers get $35,600 in interest payments, plus $89,000 in equity, over ten years, or $125,600 just for acting as a bank on an over-priced pile of junk in the middle of Dirthole, CA.

« Last Edit: October 24, 2017, 09:50:02 pm by javipa »
"149 Ways (Plus One) To Find Motivated Sellers..!"  -Free Report-
>>> Click: http://sub2marketdomination.com/how-to-find-motivated-sellers-2/

 




SMF 2.0.15 | SMF © 2017, Simple Machines