Please help a newbie !!!

General Real Estate Investing
1

I have one rental property and reside in a home that will be rented out come May. I need to buy another primary residence in May due to a move.

I have found a propery that seems like a GREAT deal (based on comps & other research)

I have many options on how to structure this deal…but am not sure what would be the most advantageous.

To know that, my future goals would be important (to buy and flip 5 properties this year NET profit 10k min. on each

here is the deal:
high comp @97k
Low @ 91K
sellers have said they are willing to do a second note for any amount above 60k (they WANT to payoff the loan and get VA cert back and have a little cash in pocket & owe 55K) They have a horrible agent they are trying to fire who has done NOTHING…(so the agent commision may or may not be a factor)
they have VERBALLY agreed to a selling price of 73 and paying closing costs…i think they may even take less

Oh! and the house is currently rented at $750.00
I would like to flip it as soon as it makes sense to do so. the lease has 6 more months left and the rehab is carpet & paint. There is a house on the street same size asking 107k

I dont know how to structure the loan so that it positions me best for more buys. I don’t have cash for deals…that might be important to know :slight_smile:
owner finance?
Rhab allowance?
can I walk away with cash on this one and pay them some and keep the rest? Like a decorating allowance after the loan of 65k?
They even said they would take a note behind the scenes for the remaining. Is that legal? Doable?
They are VERY VERY motivated (Job LOss & trying to buy another property.

The other thing that strikes me as odd is the loan officer who is working this told me that we will have a hard time getting this loan with STATED income and a 640 credit score. She also said that we cannot use 20% from them in the form of a note in order to change the LTV from 100% to 80%

I thought I had read enough…but, as I’m sure many of you way ahead of me already know - when you get thrown in the fire,the true test begins!

This has been my dream since BEFORE There were flipping shows (about 12…SERIOUSLY! - I’m a 33 year old female :slight_smile: I’m finally getting the nerve and am stuck already!!
I’m not trying to get rich, I just want to make a living from doing what makes me GIDDY!!

Please help is you have time, it would be greatly greatly appreciated.

2

Tell them to terminate their contract with the agent, and yes they have to use the word"terminate" They will sell for 73k and carry a note for anything over 60k, but they owe 55k and want that paid off ??? They want a VA cert and carry a contract That part is clear but doesn’t appear do be doable with the numbers you supply. The facts and numbers don’t add up. The bonus is that they are motivated and it appears there is money on the table for you on a quick assignment or get the deed and resell. Can you explain the #'s again ?

3

If the VA loan gets paid off (“satisfied”), their VA eligibility will be fully reinstated and they can request a new VA Cert…

Get a loan for $60K (60% of $100K should be doable in your sleep…). That will pay the VA loan off and give them $5K. Then they can take a second for the balance of the price.

How old is their VA loan?

Keith

4

There is probably a clause in the listing agreement that allows the agent to obtain a commission for anyone who has looked at the property in a stated period of time. DO NOT tell them to terminate the listing agreement or you run the risk of conspiring and it is illegal, not to mention unethical. If they want to fire their agent then you need to bide your time. Don’t get involved.