I have a line on a home that is in rough shape. Similar aged homes and size (in better shape) would fetch $150-175 K in this very marketable small seaside town.
Owner has moved out of province. They had the home listed 12 months ago for $99K. Bit scary for most people at that price. Told me on the phone he`d take $71K. I would have offered more if he hadn`t said that. Lesson #1 -First to mention a dollar amount leaves money on the table.
Anyway, I figure the house would neeed $25-30K of upgrading to make it sparkle. I estimate an honest resell value for a pretty 1500 square foot home in that location is $150K, so there is decent upside, even if my estimate is inflated.
I personally have around $55K on a HLOC that I plan to use for the renos, down payment closing costs etc.
Would like to know how I might structure a hold back with the vendor. They might hold cash but I have not asked them. I`d prefer to get some financing from a hard money lender of broker, and be willing to pay for that service, rather than keep the owner tangled up in the deal. Perhaps owner financing is easier than I think.
My situation is that I am unemployed at present, but have income coming from 4 rental units in the $36K per annum region. I`ve renovated all of my 4 units with my own money and resources (namely a $140 HLOC off my principal residence). I am comfortable in the trades and like to think my houses are different than your normal rental units.
I bought one of my houses outright on my HLOC. I could sell it (for $120-140K or a 50-70K profit) to fund this deal, but it is providing me a decent cashflow, so I`d like to keep it. I thought an alternative might be to use the same house as collateral to bridge the 3-6 months financing required to fix up this new opportunity and flip it. Can I do that if I bought it on a HLOC? Or is that considered a lien on the property?
Anyone got any ideas on financing options either A) with the vendor C) with a 3rd party ?
Anyone interested in helping me finance with the deal?
Should point out that I am considering asking a friend (with deep pockets) or family member (with properties) to cosign a short term or open mortgage for the $70K.
Any assistance is greatly appreciated. Any questions fire away. Not sure I am able to PM or recieve PM`s at this point in time on the forum.
Tks
Tony
Owner has moved out of province. They had the home listed 12 months ago for $99K. Bit scary for most people at that price. Told me on the phone he`d take $71K. I would have offered more if he hadn`t said that. Lesson #1 -First to mention a dollar amount leaves money on the table.
Anyway, I figure the house would neeed $25-30K of upgrading to make it sparkle. I estimate an honest resell value for a pretty 1500 square foot home in that location is $150K, so there is decent upside, even if my estimate is inflated.
I personally have around $55K on a HLOC that I plan to use for the renos, down payment closing costs etc.
Would like to know how I might structure a hold back with the vendor. They might hold cash but I have not asked them. I`d prefer to get some financing from a hard money lender of broker, and be willing to pay for that service, rather than keep the owner tangled up in the deal. Perhaps owner financing is easier than I think.
My situation is that I am unemployed at present, but have income coming from 4 rental units in the $36K per annum region. I`ve renovated all of my 4 units with my own money and resources (namely a $140 HLOC off my principal residence). I am comfortable in the trades and like to think my houses are different than your normal rental units.
I bought one of my houses outright on my HLOC. I could sell it (for $120-140K or a 50-70K profit) to fund this deal, but it is providing me a decent cashflow, so I`d like to keep it. I thought an alternative might be to use the same house as collateral to bridge the 3-6 months financing required to fix up this new opportunity and flip it. Can I do that if I bought it on a HLOC? Or is that considered a lien on the property?
Anyone got any ideas on financing options either A) with the vendor C) with a 3rd party ?
Anyone interested in helping me finance with the deal?
Should point out that I am considering asking a friend (with deep pockets) or family member (with properties) to cosign a short term or open mortgage for the $70K.
Any assistance is greatly appreciated. Any questions fire away. Not sure I am able to PM or recieve PM`s at this point in time on the forum.
Tks
Tony
