My name is William. Podcasts have been my life for the past few years and thankfully so as I found BP's. I am wanting to get into real estate and hoping for some advice from the BP's group.
Here is my situation:
I have been looking for a very nice duplex to purchase - I want to live in half. I finally found one after a years worth of research. The owners currently live in the duplex and want to sell it and move once the one owners mother passes. I told them I would rent the other half of the duplex from them until his mother passed and they are ready to move - his mother is currently 100.
I am trying to figure a few things out.
First - does anyone have any (creative ideas) of how I could get them to sell now?
I thought about asking them about selling now - having me take over ownership and of course full responsibility - at this point I would have them pay me rent until they decide to move out. What do you think about this idea? Do you have any other (ideas/sale pitches) that I could use that would be in the best interest for both me and the current owners?
Also - this would be my first home - what particular loan option would be best for me to look into as a first time home buyer - purchasing a duplex while living in half? I have already been pre-approved for an FHA loan.
I am trying to put the least amount of money down - what loan or tactic would you recommend me researching? I heard that you want to try and get your property appraised for 20% more than the asking price so you do not have to put your own money down - does this theory still hold?
Thanks for all the help- any thoughts or links would be much appreciated.
@William J Stratton Jr. Have you thought about seller financing? If they own the home outright this would be my first thought. Second would be to find a Hard-Money/Private money combo to get them cash for the house and get them out, then quickly refinance to pay off the hard money/private money and start your strategy.
As far as selling it to them, find out what it is that they really want (Peace of mind, cash, heck maybe something not even revolving the house) and sell them on the benefit that yo provide them.
Best of luck!
Zachary - thank you so much for this reply i appreciate it more than you know. You are my first reply and it was helping - this makes me already like this BP community as a whole. Seller financing is when they are basically the bank and i pay them a monthly figure for a 30 year period? If this is correct - i have thought of it but i don't think they would want to do this as they are both in their mid 70's i believe. I think they want to get the money and go to a retirement community.
Why do you think i should do the Hard-money/Private money combo first instant of going directly to the bank for the loan? What is the benefit for me and the current owners of doing this? I am going to try and ask them very soon why they are wanting to sell as well as the price they want to sell for.
@William J Stratton Jr. If you are going to occupy the property, there are FHA programs that allow you to put down only 3.5%
Depending on where the property is located, there is also a USDA program where you can put down $0. This is typically offered in rural areas and smaller towns.
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