WALKING AWAY AT CLOSING WITH CASH???
i always here (such as on TV) that people walked out of closings with chechs for as much as five figures. How is this possible for you to walk away with money if youre buying the property , especially with no money down??
I think that's a great question. I would like to know the answer to that also.
example: 100,000 house
buy for 60,000
repairs needed 10,000
you borrow at 80% LTV=80,000
100k-60k-10k= 70k
80k-70k=10k in pocket
this is a brief and only one example of...
Wow that's great. I guess the key here would be in ascertaining, at a 95-99% confidence level what the estimated market value would be to do this. This is where I am having the most difficulties--Obtaining the comps for various properties. Any suggestions ???
I have cashed out 10k on a property before, but the cash was used to fix up the property right after we cashed out.
Hay DaveREI,
What kind of lender are we looking for with this kind of scenario?
[addsig]
I just bought a place and got the seller to pay 5% of the total cost of the house towards closing. Now closing costs aren’t 5% of the cost of the house in most cases so I put a couple grand in my pocket... Nothing huge but it is cash in my pocket at closing.
Quote:
On 2003-10-22 21:19, joel wrote:
I have cashed out 10k on a property before, but the cash was used to fix up the property right after we cashed out.
That's excellent and is what I truely want to do. I was able to obtain 100% financing but need to extract "cash at closing" essentially for the purposes of
rehabbing the place. The major challenge I an encountering is that I in order to do this Iwould need to have the potential market value of the property
prior to contracting, am I correct???
You always need to know what a property is worth before you buy it. Otherwise how do you know if you are getting a deal or not?
Here's another example that is similar to the last deal I did.
Price: $100,000
100% LTV loan
You bring $100,000 to the closing table.
Below are examples of money that You could recieve back at closing:
$2000 in deposit money
$1000 in prorated rents
$5000 concession for repairs
$1000 concession for vacancy
$800 for taxes (Taxes are due at the end of the year, but if they've owned the property for half of it, they're responsible for paying half of it).
$???? You can get consessions for just about anything that you can negotiate with the seller. Often times a seller will give you a $10,000 concession for a $5000k job because he hasn't shopped it around.
sigh.....I'm leaving something out here, but can't remember what it is.......O well. that gives you a good picture. By the way, the last deal I did I got $15,000 at close on a "no money down" deal. Granted, some of that money would have to be used for taxes or to hold as deposit money, but It was helpful.