I Bought A $225k Duplex Without A Dime!
I don't even have verifiable income!
After much ado with a mortgage broker I finally told him to forget it. The seller has become a good friend and was really willing to work on terms. so the day after I canceled with the broker we put me on title. I borrowed 12k from my brother. so the title company put a $12,000 lein in my brothers name and $188k lein in sellers name. then I applied for a HELOC at Washinton Mutual (over the phone). my purchase price is $200k and they will do a 90% LTV owner occ. they pay off the existing leins and take first position. I moved out of my old house and into the duplex which is much bigger. then the tenants in the other side of this duplex said they are moving out so the seller helped me find a new tenant and the night before I closed on the loan she gave me a deposit for $300.
I closed on the loan the next day and my closing costs were. . . $295!
The IO payment will be about $750 (prime +.4% = 4.4% arm) and the rent is $975. and the cool thing is since it is a HELOC my equity is liquid. I can pay as much as I want and then it I want to use it somewhere else I can take it back out.
That is so awesome! it just worked out well. now I need to rent out my house for $800/month to cover my $470 payment. Thats why I havent been here for a while. I've been pretty busy.
P.S. I love the new look!
[addsig]
congrats on your deal....sounds like you are stoked, keep up the good work, good luck and good investing....
[addsig]
Congrats!!!
I really like Washington Mutual, I've been reading about their loan programs and I especially like the 40 year term mortgage-which lowers your monthly payment a lot! Keep it up, I will be able to brag in a few months...
thats great! shift gears and go on!.
That's STRONG cash flow.. especially for your first deal. Way to go, I love hearing this stuff.
I am looking for my first deal now. I just hope I do as well as you did. Fantastic deal. Happy investing! Lenda
Congrats jpchapboy
...But i just got turned away from a mortgage broker for not having enough capital and collateral. Do you have any advice for me....I am bit frustrated at this point. It was going to cost me prob. around 9,000 for closing costs if it went through.
By the way, i was looking at a 6 unit commercial property for $140,000. If you can point me in a direction or to someone that can help me out, I would be most grateful!! Also, my seller is also willing to help out with the financing too.
I guess I am not as literate in financing as i thought I was :-(
Thank again & congrats!!
Chris G
Congrats!
I hope I will be able to brag about mine soon!
the only thing with a heloc is that the rates are adjustable. so your payment will go up since we've had record low interest rates. if you are not planning on not paying off the loan anytime soon i would consider a fixed rate loan.
Great Job JPChappy Boy! You can laugh your way all the way to the bank in the future. This is a pure example of what creative real-estate is all about! Keep up the good work!
Best RIches,
Jeffrey Adam
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Congrats man !!
8-)
The "Curlys"
Wow! Just the motivation I was looking for as a newbie...
You've got me doin' pushups listening to the theme from "Rocky" :rofl:
Right on!
Way to go! Thanks for sharing your success. It reminds us that these kinds of deals can really happen. Great cash flow too.
Robert
Great Job!!
Good job, i can learn from you pro's
Wonderrrrrful !
I do love to hear it...
I'm trying to figure out how much more I can learn here too, though...
Just wondering: What would you have done here if you didn't have a family member willing to take a 2nd position?
Also, can you give some idea of specifics on the HELOC? Obviously stated income, but what was their criteria? I know nothing about HELOC's, but I'm surprised they would do 90% LTV on stated income... Was that based on the property, or did it have anything to do with reserves, FICO's, etc.
Again... awesome job.