Need Suggestion To Purchase A 3-unit FSBO
I found a 3-unit FSBO. Sellers (brother and sister) are asking for $77K (no negotiations have been made yet) . Sellers currently occupy 2 units and have kept the 3rd as a closet and office. They have owned the place for 9 years and originally purchased it for $40K. I don't know what loan terms and rate they had (or maybe didn't have) so I wouldn't know how much equity is in place.
Cash flow looks good assuming current rental rates in the area. Sellers would still want to lease the 2 units after close for another year at the market rents until they decide what to do or where to move.
I am looking for a way to structure a proposal that would involve minimum to 0 cash down (of course) without having to go through a NEW lender. Would this be a good candidate for a sale-leaseback? I am open to suggestions.
Thanks!!!
Try FHA or a 95% loan through a broker in your area.
Oh, I forgot to mention, this is going to be NOO.
Why no new lender? Can you qualify for conventional financing? Have some ideas but need a little more info about you.
Good Luck,
Shawn(OH)
Quote:
On 2004-01-13 10:12, loanwizard wrote:
Why no new lender? Can you qualify for conventional financing? Have some ideas but need a little more info about you.
Good Luck,
Shawn(OH)
I just recently closed on a duplex and would not have enough to pay closing costs and have reserves.
Get a feel for the owners, maybe you could take over pmts and promise the current owners their equity after they pay their rent on time and move out in a year.
The main thing is that you talk to the owners to see how motivated they are. What problem do they have that you can make go away.
Me, personally, if they have NO HURT, I can not help. I like helping people out of their situations.