1st Deal And Need A Little Advice.......
I am currently about to do my first Land Trust deal.
House value -135,000
Mortgage balance- 99,000
Mortgage payments- 899.00
Equity -35,000+
Fee for the titles ect - 14,000
My plan is to refinance the property and get out my money. I was thinkig of doing intrest only payments on the mortgage and renting out the home to collect cash flow each month. One other option was to lease option it out and at the end of the tearm collect the rest of the equity. This is my first deal and its a little tough to know whats in my best intrest for each option that I have. Can someone please respond and give me a few pointers and what to look out for. The home is in another state so I am hiring a property management company to handle all the landlording issues. I am not emplyoed there for I do not have the credit to refinance on my own but my father is willing to try to refinance even though he has terrible credit. Are there any compaines or clubs that would co sighn a proety for you if in exchange gave you a percentage on the equity in the future??? PLEASE HELP
:-?
What should the purchase price be in order to pull out the equity?
Purchase price has nothing to do with "pulling out the equity," unless the lender specificly allows you to borrow more than the purchase. Setting it up with a phoney sells price in order to get out the equity is loan fraud. If you want to do things that way, I'd worry more about being put into a jail cell with Bruno than how to make the deal work.
If you're wanting to pull out equity, then find a lender who will loan against the appraisal/tax value etc regardless of the purchase price (hard to do), or simply buy the property and to a quick refinance from a lender that doesn't have a seasoning requirement (requires some work, but doable).
What I'm having a hard time structuring is the purchase of the property
I bet so. You need to find out a few more details before there even is a deal. You don't know the payoff (13-20K is NOT a payoff amount), and you don't know what the husband wants out of the deal, period. Not completely clear on what the wife wants (except for the $50K). If she is wanting to L/O from you, then I would strongly recommend against that. You can read tons of reasons why this is a bad idea in previous posts. Just run a quick search.
Roger