Including Repairs In Sale Price
I have a deal to buy a duplex for 100K. I need to add the repairs of the home in the sale price so the mortgage will cover it. Does anyone know how this is done? My mortgage company said it is typical but the agreement is with the seller because the inflated price gives the seller more capital gains taxes. Does anyone have a contract that covers this? Of course I need quick respones because I need to get a binding contrat to the seller yesterday.
Kecia
Thank you!! That info is a great help.
Being in Phoenix area with a soft market right now, I would talk with BOTH lenders and try to get about a 60-80% discount on the 2nd and then see if the 1st will give you about a 20-30% disc. OR MORE. They must both give you a discount for it to be a real deal. You will have to have some private lender ready to go if the mortgage co. says they will discount. You want to take care of them quickly. If so, they will offer you more deals.
Also, is there still a good market for something in the 550-600k range?? Prices have dropped significantly and some of the buyers are not there anymore.
I was scared to ask for more than a 50% discount for a non performing loan that I purchased. I asked for half the face value and thats what I got. Same guy called me a couple of weeks after we closed on that one and said he had another one. He knew I could close. This time I bought for about 20% of value--because I asked and was not embarrased. I have since bought several non-performing notes and over 50% discount, just by making an offer.
[ Edited by rickpozos on Date 06/05/2007 ]
I’m a little confused… are you saying you’re looking at $10k-$15k profit each against a total investment of $875,000?
If so, I wouldn’t touch it. You could eat that up in a couple of months of holding costs alone.
Or, is that $10k-$15k profit for future rehab projects you want to do? And if so, what are you making on the first two deals?
I’m also curious as to where and why you’re getting $65k back at the close of escrow.
I couldn’t disagree more. If anything, the opposite is true.
“High risk” is not synonymous with "high reward." Not even close. Nor does “low risk” equate to low reward, or low return.
In fact, low risk can come directly from be educated, being experienced, proper due-diligence, financial staying-power, negotiating skills, contacts, etc, etc, etc.
So, which one of those leads to a low return?
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