How To Get Money In Escrow Back?
Ok, so I am working with a Realtor, and I found a three unit house. After running the numbers my NOI is 1,507. I then calculated with a loan at 6.3% with no money down (lender said this can be done, but hasn't been offically approved yet), for a total offer price of 242K. Asking price is 380K.
My Realtor wrote into the draft of the offer a 1,000 check to be into escrow at the time of offer, along with a 4,000 check after completion of satisfactory inspection... making my total payment at time of title 237K.
That's 5K down, not "no money down".
How do you show good faith but no put any money down? Do I write in that I get that cash back, and they get a check for the full 242K?
Please Help going to meet this afternoon!
A couple problems.
First, you're not communicating with your agent. Why is he/she/it writing offers that don't make sense to you?
Second, it's your offer, not the agent's. The agent can write in anything they want, and you can then laugh and change it to what _you_ want. What your agent wants doesn't matter. (However, if what you want and what your agent wants don't match, find another agent. Everyone will be happier.)
In this case, you're making an offer that's very, very, very low. If they're going to bite on an offer of $242 (vs $380 asking) then the seller is probably desperate. Drop your deposit as well.
And "no money down" can frequently translate to "about 3% down." Make sure everyone (your lender, primarily, but also your agent and possibly the seller) understands that you're planning to finance the closing costs.
If you get funded w/ a 100% loan, you will have excess funds in escrow at the close, and they should be refunded.
100% doesn't mean 0% out of pocket during escrow.
Hi I am in the process of purchasing a 4 unit house, but how on earth did you get no money down?? Everyone wants at least 10% for an investment property, any ideas?? :-x
Quote:
On 2004-06-22 12:48, stangboy041376 wrote:
Hi I am in the process of purchasing a 4 unit house, but how on earth did you get no money down?? Everyone wants at least 10% for an investment property, any ideas?? :-x
Its contingent on being Owner Occupied (which I'm going to do) and excellent credit. I got it through First New England Mortgage.
Based on the details provided it sounds like a good deal. Well done.
John
[addsig]
At this point its just an offer, I hope it turns out to be a great deal. We'll see if they counter or not.