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.
Buying a $375k peice of real estate with no money, credit or income is just plain foolish to put it bluntly. When you have a vacancy or tenant damage how are you going to pay the note or pay to repair damage? What happens if you get sued? You’ve got no money for a lawyer or court costs, etc. What happens if the furnace goes and you need to replace it? Who will pay that bill?
If you had a steady job and at least had some decent available credit on a credit card to handle any major problems I’d feel better about you doing this but you don’t. You might want to flip this one to someone else and bank that cash for the next project. Maybe start wholesaling what you can to build up a cash reserve, work on building your credit, and most importantly look for J.O.B. to pay the bills for now since you aren’t going to be an overnight RE millionaire despite what the 2am infomercials say.
Vision, you’re going to need good credit if you plan on getting a loan of some kinds from a bank at some point in future. Job/no money is not that important IMHO, but good credit is a must. If this is a good cashflow deal, I say keep it and work on improving your credit score. Otherwise, I’d say flip it.
Another thing… check your numbers… he might be taking you for a ride (i.e. you do all the work and he keeps all the cashflow, then you go belly up and he gets the property back…)