An out of state investor wants to sell a property to me for 69000. I can probably resell for 110000. He will keep the loan in his name if I pay 6.25%. Needs $10000 to rehab I will fund rehab. I want to keep the closing fees down if I can.
He originally wanted to have me obtain financing but the hard money was too expensive. He is open to suggestions. What can I do?
A lawyer recommended a land contract. He said it offers more protection while rehab is being done. If have went over the numbers in so many different scenarios I can’t think straight anymore. :help
:cool YES land contract/// owner finance sounds like the way to go have a lawyer draw it all up //// but if you can find one neiter of you knows or has worked with so there will be no well you know ( from either party) :beer
If the numbers work, a land contract with owner financing is the way to go. Just make sure to register the contract so that you are protected.
How about the closing. Do I need to bring money to the table for a land contract that is recorded.
Your attorney will advise better than I can. At a minimum, you will have to pay the recording fee, but your question implies you normally don’t record your contracts. Any type of contract that involves ownership of property should be recorded. Sellers can encumber the property and put your interest secondary to the lien.
I too agree with the other suggestions posted by fellow meembers. owner financing via land contract would work best for this deal. The closing cost will be minimum in comparison to conventional closing. Your attorney will have a better idea of your total closing cost. Hey, u might consider OPM for repairs and closing cost. by doing this you woould have zero invested making your ROI unlimited; just an idea.
happy Investing :shocked
Who would lend money on deal like this(OWNER FINANCED Land Contract). I don’t even think a hard money lender would do it.
:cool OKAY you are startting as another poster said sounding like a person who has not closed and filed a deal ??
ANY way if you want to why not set up a land contract with a simultaneous close /// your seller gets all his money now and if you have a buyer lined up all ready and or fast you can charge them the money as a down payment ( funds needed for rehab ) !!!
AS far as your cloe ing cost they will or should be about .5 % of your buy price may be a little more or less
JUST A WORD KEEP IT SIMPLE DO NOT MUDDY THE WATERS ON A DEAL
how about a less risk senario…
How about an option ? this way your not obligated to buy… but have the option to…
:cool WHAT risk ? IF it is a simultaneous close every one gets there money !!