All Forum Posts by: Filkins Susan

John, thanks for your words of wisdom!

My issues here are many. Here are a few:

- We are trying to buy a house in an area where it is impossible to rent, and there aren't many properties for sale either.

- The properties here that are for sale, are way out of our budget, and most are not even near as nice as this house will be with minimal repairs.

- Most of the lower priced properties listed in this area have much smaller lots than this house.

- We have been shopping since November and knew that our budget would only allow something that "needed work", or was far too small.

- 15-20 people have already looked at this place with us (including our contractors) and 95% of them say we are getting a great deal, and the house has unbelievable potential.

- This is NOT an "investment" property. We plan to live there for 10 years minimum, if not forever.

This house has been thoroughly inspected by people that will be doing work on it for us.

The structure is solid as a rock. The bathroom needs a complete overhaul (6-8K) The kitchen needs to be sheet rocked, with a few other minor repairs (2k, MAYBE), the heat repairs will be 5-7K, and the electrical works that needs to be done has been quoted at 3k tops.

Minna thanks, but I am having an impossible time finding any lenders that do that loan.

Ben,

I guess I was more looking for ideas on how to finance.

This will be my residence, and it is my first home. And the seller is selling it "as is" and is not willing to be any part of the financing of it.

Thanks!

In central New York.

Hi again :)

Here is my original thread about the property I'd like to discuss:

http://forums.biggerpockets.com/viewtopic.php?t=10328

We now have a purchase offer in on this property, and must make an application within 5 days.

We shopped around some, but have mostly been working with a local and large reputable bank. However, the mortgage lady kind of ticked me off today.

I wonder if there are other comparable options out there for us.

Purchase price - $41K
Rehab needed - $25k
Estimated value after rehab - $80k
Credit scores - mid to high 700s
Job history- 12 years
Open lines of credit - 1
Debt - None

Any help or advice would be greatly appreciated!

-Susan

So what would the pros consider the average profit percentage on a wholesale deal?

Thanks :)

I thought this was just a bonus. I thought it was to have a home equity line of credit.

I guess I just don't "get it" :oops:

Oh well. We will be sitting down with a bank on Wednesday for all of the details.

Has anyone ever gotten HUD or USDA grants or 1% loans for repairs?

HAHAHAH!! Ok Mike, will do :)

Mike, you are right. They were not on the market. This is because the guy buys distressed properties and turns them into amazing homes, and selss them for FMV. He does some of the most beautiful work I've ever seen. He is retired and this started as a hobby, but has become lucrative for him.

I just happen to call at a good time as they are just getting ready to list his most recent project, then plans to do work on his own home, and planned to start on one of these two houses late this Summer. They are just "willing" to let one of them go.

The profit margin might seem high, but he got the property that we are interested in for $17,000, and is asking $45, and said it was negotiable.

I'm just so excited. This might be my dream coming true in the making right now. *hope*

Thanks again, PROS! :D

Thanks for everyone's advice!

I went and looked at both houses this weekend that these folks have.

We expected to really be most interested in the one that they want the most money for, but much to our surprise, we liked the cheaper one with the worst location the best!!!

They quoted is a pretty good price on the place, but still a lot of money for what it is as it stands. The price they quoted us would put them in a position to more than double their money on the property, and they haven't touched it. It needs about $25-30k put into it to make it right, and fairly nice. We can probably make it "livable" for about $10K.

Now comes the financing part. I have no idea what I am doing here, and I want to do everything right so that the bank doesn't turn this place down as "too high risk" because of its condition. My sister (ex realtor) suggested that we talk to the bank about an 80/20 HELOC, but I'm not that familiar with that. Plus I know this place will not qualify for government lending.

Any further ideas or suggestions would be much appreciated.

Thanks :o)

Susan