Hey REIClub:)
i may have asked for advice a few times about some real estate.
but im actually looking to go for the big first deal! which everyone always remembers!
i’ve been looking at a property
asking 80 000. its a single family home.
looking to buy this thing!
for a 2+ bedroom home
2 stories in a not too good area. but heck if the rent pays then why not!?
im looking to owner finance how would i get into the whole owner financing jazz??
looking to offer about 65000 aswell.
maybe rent at 750 + expenses.
what do you guys think?
im thinking buy hold/rent then sell with a few renos and maybe some new cubbords etc.
What do I think? I think there is no way to have any opinion whatsoever without some facts and solid figures.
You get into that whole owner financing jazz by finding a seller who wants to carry paper. Most don’t want to and couldn’t anyway. If you want owner financing, you’ll have better luck by finding sellers who will carry and then look at their property to see if you like it than you will have by picking out a house and then trying to talk the seller into it.
Not saying you shouldn’t ask for owner financing if that’s what you want, but don’t expect it to be a readily available option for every property you look at.
Owner financing is great if the seller is willing. Most sellers are not, because they need cash to pay off a mortgage. The important thing is not the house. It is how motivated is the seller. If the seller is truly motivated to sell, then they will be motivated to do all types of seller financing, Lease/Options or Sub2 deals. The good news is that there is an increasing number of motivated, check that, desperate sellers out there looking for someone to bail them out.
That said, Tatertot is absolutely right. Before anyone can make any useful suggestions, they, and you, need some solid figures. You say the asking price is $80k, but what is the real value? If the Fair Market Value is $155k then jump on it! If the FMV is $80k then there isn’t much here to get excited about. Are their tax liens? The owner behind in payments? Already moved to another city and can’t make two mortgage payments? A landlord who just had a horrible eviction experience? Has it been on the market for nine months? Are there repairs needed? Is there a tenant in the property paying only $400 when market rent is $700? Does the seller owe $80k but the house is only worth $70k today? Has the property been vacant for three years?
Get solid details on the seller and the property situation, then people can help you.