I’m interested in buying, rehabbing(just a little), and running an ad that says something like " Home for Sale…Will Finance, $1,500 down, 350/month"… It seems the way to go for houses that are no competiton for those around it or that banks would be less than thrilled about mortgaging… Anyone done this or have any advice ?
I don’t have the money to sink into getting a place perfect and putting it on the market…
With that low of a down payment, I’d say you’re giving the house away - especially the appreciation factor - because the payment may be lower than rent you could be receiving…Unless you end up selling the loan note at a discount, you won’t have real cash flow off of this, nor the appreciation and depreciation (tax aspect)…
A larger downpayment would be great but i figured that the target group probably does not have 4k lying around… Also let me add that I am looking into houses that are in the price range of $4k -6K… So it might just take a year or so to get my money back depending on the downpayment and monthly payment…
I realize that I’m not going to get rich overnight this way, but as i said, the houses might not pass a bank inspection. Also it seems easier than renting-Aren’t the new owners responsible for fixing, etc. when you do owner financing with them?
If you do it as a true sale, then the new owners would be the ones doing repairs, but would they be interested in owning a money pit?
And it’s possible that if you need to foreclose - the house might be in worse shape when you get it back.
If a home won’t pass a bank inspection, you might need to do more than ‘just a little’ rehab to make the properties presentable enough for someone to purchase.
With houses this cheap, it really might be better worth your while to fix them up a little nice and rent them out. Could be a very good long term investment for you.
:cool OKAY we do owner finance all the time as well simultaneous closings ! THE first thing is this we work with fico scores down to 500 ,but the fact still is this if they can not come up with at least 5 % down they really are a big risk !!
AND this is how they have little or no real need to take care of the place they would walk away faster then some one with a vested part in the home house payments are just like rent to them !!!
IF you are buying low incme type homes fine but do not screw your self in the deal , put some money in the properties and sell them right , and make your money and make some person happy to :beer
One house I’m looking at for the price isn’t really that bad (like a money pit sort of situation)… It needs the subfloor replaced in the living room, new paint, carpets, etc. -and has but one small set of kitchen cabinets that are old. Paint on outside too…
It would be nice to sell it outright and get a nice chunk of change but with the kitchen being less than appealing, I have no $ to put into new cabinets and things…
The bank would probably approve this house, but then again I don’t know thier standards??? Foundation is ok and structurally ok…
:cool QUESTION ?? IS this house being sold by owner or realtor ??
THIS could tell you alot right there!! SELLER owner they may know it is crap !! REALTOR they have to let you know if they think a bank would finance it and for about how much !!! SOME places are better left for demo !!! AND start over with bare land being worth more then the land and home !!
BUT you should check with the bank you may use to see there rules !! :beer
Sold by owner, he is an investor who wholesales quickly and has less concern about waiting it out to get the best price… the property is a foreclosure.
I might try and find some cabinets and such somewhere and put some extra effort and cash into it. Might be a nice way for me to get started… Then maybe I could buy 2 more and start on my path to richness. :evil
You can get unfinished oak cabinets at Lowe’s. Paint them glossy white. Very inexpensive fixup that looks great! It’s cheaper to buy the unfinished oak than even the ready to install white cabinets!
:cool HEY LORIK ARE my posts more read easy ??? AS well easy on the mind and eye ???
Well, better anyway :biggrin