There are 3 different houses I’m looking at that range from 10k to 26k. I want to buy one as a rental, but neither have the cash to buy or the ability to get a loan. The most I would be able to offer is 10-15% down w/ low monthly payments. Would this type of deal be acceptable? To anybody else who purchases property via seller financing… what type of terms have you used?
10-28k for a house? where are u?
baton rouge, la…there are houses that go for a lot more…these are low income areas. is it against any rules for me to put links to the page that shows the houses?
It’s against the rules to link to your own website…you can link to the website of others…
Keith
You can try it. It’s very difficult to get a mortgage for under $50k anyway. A lot of lenders have that as their minimum since the fees can’t exceed 8% of the mortgage value. There’s no profit for them in small mortgages.
here are some examples of some of the cheap houses around here… they are in pretty low income areas so i wouldn’t be interested in buying and selling…but i think they would rent. i would talk to a re agent and/or management companies first.
Shaun,
Seller financing can be a powerful tool for buying, selling and even just to invest in.
If the seller needs the cash to walk away, have them finance the deal then sell the note. It would be wise to have the seller speak to a note BUYER. Notice I did not say NOTE BROKER, to structure the terms of the note.
The shorter the term, the higher the interest and the greater level of equity in the property all make for a better note.
Of course one of the key factors is the FICO score of the note payer, which in this case would be you.
It is true that at this level, most lenders won’t make a loan as it simply is not worth the hassle for them to do the paperwork. Local lending institutions would be good, but seller financing is the quickest and most pain free solution in your case.
Hope that helps.
I have seen homes like this at my area in TN and they are going for about 30+ onwards but they require extensive work on them like $30-90k depending on how much you want to put in. is it worth the time and effort to do it for about $9-10k profit a month and 10-15 hour 7 day a week ? I think flipping them would be better. Suggestions ? The area might be slightly better but not a whole lot more better but Is it really the time worth putting in? A similar comp done for a similar property about 4-5 house away… selling for $140-170+… not sure what they got it for.