FSBO
Hello all, I need some help on approaching a seller with something creative. I'm in the San Diego area and as you know prices are out of this world. In any case I'm interested in a house that has 5 bedrooms (Garage converted) very good job on the conversion and 2 baths.
The house is free and clear the owners have already purchased another house. I want this house for my family to live in.
I'll have about 20k cash to put down; I need some ideas on how to get this house because the house is going for 525k. Running the number and a 30 year loan I couldn’t afford the monthly payments, at the most I could afford 1650. What are some other things I could do to get this home?
Thanks in advance,
M. Howard
Try running the numbers on a ten year interest only that converts to a 15 year fixed. You should try to pay off as much of the balance as possible before it converts. Just a thought, hope it helps.
Welcome M. Howard,
The key I see here is that you say the home is "free and clear" and "the owners have already bought another home."
Question, will your income situation get better in the near or not too distant future? If so, you could agree to pay the owner interest only for a period of say three (3) years and then cash him out when you can swing the loan. You could also offer the owner a lease option situation that fit your budget of the $1,650.00 per month for a period of time of say, five (5) years, and then get your loan.
It is really going to depend on how flexible the seller can be with you. The only word of caution would be that if you do not see your financial picture improving as far as your ability to make larger monthly payments, you may want to pass on this. Good Luck.
Dave
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"Opportunity is missed by most people because it is dressed in overalls and looks like work." (Thomas A. Edison)[ Edited by dealfinder on Date 06/21/2004 ]
There are many ways that you can go about this, but as the others have said, it really depends on when you will be able to afford the type of payment that will be on this home. If you L/O or any other type of owner financing, you will eventually have to cash out., so if you won't ever be able to afford the payments, you may want to find another house.
Thanks guys for all your help. If this situation turns out for the best, I'll let you guys know.
Thanks again,
M. Howard