[b]Why or why not is this a good deal for an investor with a little money and good credit. Are the terms bad or is this a risky thing?
Thanks.
[/b]
Looking for Investor in Contract (North Metro Area)
Date: 2012-06-18, 5:46PM CDT
Reply to: @hous.craigslist.org [Errors when replying to ads?]
Private individual is looking for an investor to purchase a house of my selection and immediately turn around and sell it to me on a contract for deed. This house will be my personal residence.
Looking at bank owned houses in the area of $200K or less in the …area
Terms:
• 15% increase in the purchase price.
• 7% interest rate amortized over 30 years.
• Contract balloons in 5 years.
• Down Payment: 8 to 10%
Stability • Excellent
• Alternative financing required due to loss of $10M/ year business.
• Myself & family now in rebuilding stage
it may look risky to some because of length of the loan,down payment not big enough and exit strategy… most private investors atleast the ones I deal with dont want to be in a deal for that long(no longer than 2 yrs) plus they like to have a bigger down payment paid back to them incase of default on loan… as far as exit starategy they want to know how they can get out of the deal like would you refinance after a few years to pay them off…
I think the more important thing is if you are going to buy anything, the purchase should be a good deal, with multiple exit strategies. That way, if the one guy does not work out, it will be easy to find somone to take his place.
For this guy, how about finding him a rent to own? You can market to expired listings, fsbo, frbo, find someone who is willing to rent to own or seller finance to you, and then you rent to own to him, at a higher rent and purchase price. If he doesn’t work out, you can always find another tenant/buyer.