there is this piece of property i have had my eye on to own. well it is suddenly on the market... and i am not ready. I have no way of getting this carrot that has been dangled in front of my eyes. AN AWESOME price deal too... and its too bad, under another circumstance they would owner finance to us, but they are forced to sell it. its owned outright i cant give details as i have an idea i have yet to try.
What are some ways you have non traditionally aquired a piece of property?
@Annette A. , the first simple way is to find a partner. That is difficult without a track record of knowing what you are doing by having done it before. Perhaps you know someone who has the money and might do a joint venture. If that is not possible perhaps you know an investor who would pay you a fee for referring the deal to him. You said they sellers cannot finance it but here is a possible 3rd option. Ask the seller to only finance 20 to 25% of the sale price. Would that be enough to get them out of their current problem? You might get a bank to finance 75% to 80% of the purchase price with a first mortgage. Ask ahead of time. If they are getting 75% equity on their first they might not care about someone getting a 2nd mortgage behind them. I have done this a few times so far. I had a track record before I tried this so it might have helped. When I do this I take out only 15 year loans, and have the seller finance the 20% down the bank wants with a very low rate of interest, say 2% and then have a 5 year balloon payment due on it in 5 years. On a 15 year loan at 5% interest you will pay it down enough to pay off the 20% balloon in 5 years with a refinance. This makes it hard to cash flow a property but if you keep it together for 5 years then your position improves quite a bit.
None of these ideas are slam dunks, but you won't know if you don't try. As a final thing try posting in marketplace here on BP and see if you can find a local BP investor who can help you. In an of the scenarios I mentioned you will need to have all the vital information laid out in a clear plan. What is price, what are local comps, how much for repairs, how much holding time, how much cash flow, etc. Will it be a flip, will it be a buy and hold, etc. Good luck.
thank you @Jerry W. . :D for some options.
how about a hard money lender? Are you planning on selling it? Does it need work? If it needs work you could get a 203k loan
If there is a note buyer who likes to buy notes secured by property in your area there may be another way. Find out what the seller needs from the property then contact the note buyer and learn how the note must be structured for the note buyer to pay the seller (note owner) what they need. The seller may be willing to do a seller financed deal if you can show them they will be able to cash out the note quickly.
hey all, a bit more info- they HAVE to sell cause he was put in a nursing home needing full time care and the state gives yo no choice. .. when you have no insurance. so it is a MUST sell.
so she needs ALL the cash now, up front and can't carry any. or she would.
Annette, it would be helpful if we knew the scope of the problem. Are you needing 50k or 500k? Ballpark number is fine.
@David T. it is for personal venture of a farmstead of like 100 ac and I need about $135G plus rehab cost. Has an established orchard and some other perenials.... I am looking to do an organic farmstead. Its a place i have wanted to LIVE and make a living, while i do business in both dept. (farming for pleasure, and realestate- is also for pleasure.
i would turn it to an LLC, and make it a business. so business venture it is.
@Carol Zeroual that is what i was thinking today. that number would work... and no it would not be resold. but if i can buy it, fix it.. it would increase the value and then i should be able to do a refinance.
@Jeff Rabinowitz that may be a way to go.
I dont believe i can go convential loan cause the house isnt insurable at this point. It needs to be brought up to code with plumbing, wiring, roof and chimney.
i am thinking hard money but i know nothing of it?
I recommend you contact the nearest Farm Services Agency office. The USA has loan programs for new and small farms. There also seems to be an organic farmers association in Maine that may be able to advise you.
USDA not USA above...stupid auto correct
thank you @David T. that is a good idea. :D