property free and clear
owner will finance with affordable monthly payments
propeties are rented out
$5000 monthly income
owner wants out for retirement
Owner says will sell below market
$375k purchase price
3b 1b homes Fair condition
So far I know that these are well below market because there are condos selling for way over 400k. Home selling for over 500k.
I know I will need to do my research before purchasing these properties.
So far this seems like the chance of a life time for me to get into real estate investing because I have no credit, no money, no job.
I need to hear from others: if the information I got is verified by research and talking with sellers.
What type of terms should I try to negotiate?
Should I buy and hold?Since they are all rented aleady and if my negotiation can produce positive monthly cash flow with built in equity at purchase.
Should I just flipp to other investor for cash?
My strategies that I have said I feel most comfortable doing are buying low and fixing then selling high. Also just flipping properties.
These properties just feel into my lap now I find myself wondering into other strategies. Who wouldn’t jump at a property with owner financing.
I strongly feel that this is my ticket to sign a contract and have built in equity in all properties at purchase and some cash flow every month. I figure I can refinance and use this money to start rehabbing and also build some well needed credit for myself.
Also if you guys have any suggestions on a plan b c, and d for exit strategies.
I don’t want to be a “debbie doomer” but you should at least get the answers to the quesitons below figured out.
Does anyone else know about this great deal?
If yes why did they pass?
Why is the seller not getting more money if the market will bear it?
What does immediate and longterm outlook of the market in your area look like? If it looks like its on the decline, I would wholesale the property to another investor.
How do you anticipate on paying for repairs with no credit and no job?
How do you intend to refinance with no credit and no job?
If it is a good deal and you have no credit and no job you should either wholesale or assign the contract to another investor. One other idea would be to lease option the property for as little money down as possible then sell it to another person who has financing or re lease option it to another person and play a rate spread, and cash out in the end.
As far as financing, if you somehow could get it with no credit and no job, if the property appraised at 500k and you got it for 350k, more than likely you couldnt pull alot of money out. If banks allowed at 70LTV loan on 500k then you would be right back at 350k. If you could get 80LTV or 90LTV then you would have a chance, but many lender only go to 70LTV on non owner occupied investment properties. You wont be able to borrow anything if you lease option the property, so in other words you would have to buy the property with financing, then refinance after with no credit or job (that might be tough)
Your said, “One other idea would be to lease option the property for as little money down as possible then sell it to another person who has financing or re lease option it to another person and play a rate spread, and cash out in the end.”
Do you get the sellers to agree to let you do this or do you just do it after you have control of the property?