Hello everyone! I am a very new investor and attempting to complete my first deal and I have 2 possibilities. I’m wondering if I should leave one alone due to the person has seemed to change the terms. Here’s the scenario… The ad was advertised as No down payment, owner will finance, 20k under appraisal. In the ad it said “I will finance it myself!” As I contacted the ad via email due to we are in 2 different states the owners son answered me back and advised me he was handling the sale for his dad. I asked the terms of the no money down, owner finance and I was told 7.5%, 30 yr fixed, and the price he was asking. As time went on we continued to email and I had my representative go and look at the property and send me pics. I was still interested and confirmed the terms w/son. He then mentioned he had a friend who is a broker and was going to be the one handling the “owner financing”. I told him, no I didnt want to go thru bank due to some credit problems and I planned to do the “owner financing” and refi in about 2 years when my credit got better. He continued to post ads and went down by 1k, however, ad continues to say 0 money down, owner will finance, no money out of your pocket. After he gave the somewhat comlex way he is going to get the 0 down from the broker, I continued to tell him I want to do owner finance. He said well if you want my dad to finance it I think he will but you will probably have to put a down payment down. I asked how much and he hasnt answered that question yet. Another ad posted that now says "I am willing to help w/financing, and or do a 20% 2nd if needed. Either way you can buy this house for no money out of your pocket and have a payment of $500 p/mo w/$20k in equity right of the bat. I let him know that there were a lot of changes from when we began speaking and now. My question is: (1) would you leave this alone completely, (2) would you see how much would be required down, (3) would you go thru with the financing (he says his friends company underwrites their own loans and can work miracles, or (4) something else? ps… the appraisal he is talking about is 1 year old, however, zillow.com & cyberhomes.com give about the same value as his estimate. Thanks for any help.
$20k in instant equity based upon a one year old appraisal is highly suspect. Regarding changing of the terms, if you want this property then make an offer with the terms you want stop worrying about what the son is saying via email. If they reject your offer then make a counteroffer or walk away.
You never gave the value of the property. If it is 60K then you are getting a good deal. If it 120K then it is not a good deal. Need more information to give you guidance.