New to this stuff...please help!!!
Couple looking to buy first home, we are renting right now and the landlord wants to sell us his interest in the property (for $2,000) and have us take over the note. He says it's $335 a month for 14 years. It has an older singlewide on it, but we wish to put a new home on it. Feeling a bit overwhelmed, can someone offer some advice? Our credit rating isn't the worst, but it could be better, we're working on it. Last time we checked it was mid to upper 5's...
Thanks!
C Kraft
I need much more info to help you out. What is the appraised value of the property? Is the mortgage assignable? Are you planning to build a house on the property? Has the property appreciated our the last few years? Are you planning to live on the property long-term or is this just a short-term investment?
[addsig]
Jake_n_Colleen,
Glad to meet you.
I would have to say an older single wide is worth relatively nothing, you can find them all day long for $500-$1000 dollars, so discount this from the selling price.
As I calculate the deal you are going to pay $56K for the land itself, so a quick check on the comparables in your area on just land or lots will give you a fast answer.
Is this a mobile lot or acerage? Either way it sounds unless it is a super area, you would be overpaying for this deal.
Welcome on board this board, remember also that mobiles de-preciate rapidly so the land would have to have the value not the mobile.
John $Cash$ Locke
PS: To build a home where the zoning is for mobile lots would be a great way to lose money also.
[ Edited by JohnLocke on Date 05/26/2003 ]
Dural and John...
Thanks for your responses, we are just beginning to get all the information about this property. It's located in an older subdivision of mostly mobiles, a few sight built homes, maybe 2 or 3. I'm wary about this deal because he told us the property was about 30,000, but, I calulated (as you did John) and the end price would come to about 56,000. This property is definately not worth it. Our problem is we have children in this school system and to move them out would not be good for them, and also, with our credit rating not being all that good we cannot qualify for a conventional mortgage. We're just tired of moving and want to settle in a permanent house, but we don't want to invest unwisely either. Any help you can offer would be wonderful. Thanks again!
-C!
Jake_n_Colleen,
I fugured your reply was the case in his instance.
There are methods of purchasing properties with little down, like $10 and the loan stays in the sellers name, thus giving you financing without a credit check or new loan.
I am familiar with one method it is called Subject To investing.
You must learn to think creatively rather than conventionally. Once you are in this mind set then you will realize, you can have the American Dream even in your current situation.
John $Cash$ Locke
John...
I have never heard of such a method. I assume it's legal, but what seller would find this attractive??? I've looked for lease option programs but they are few and far between. We live in East Tennessee, I don't know if your familiar with our area. I apologize for my lack of knowledge, but this is new territory for me. Thanks!
-C!
If I were in your situation, I would be looking for a lot and house 40% below market value, such as a rehab.
Here is the reason why: in my state (NC), if you reside in the house for more than two years, you can sell it with no taxes on the first $500,000. Actually, it's been a while, so it may be one year with no taxes on $250,000. Not sure. But in either case, if you buy a house worth $100,000 for $60,000 and then sell it two years later at full price, then you have $40,000, tax-free!
However, I recommend checking with an accountant or tax attorney in your area to see what the local real estate tax breaks are, and then take advantage of them.
[addsig]
Jake_n_Colleen,
Familiar with your area I trained admission representatives for a major corporation who enrolled students in your area after they set appointments in Johnson City, Irwin, Athens, etc. You get the picture.
I remember being out with one of my trainees, when the folks we were going to talk with met us at the local gas station - country store and said "if you need to 'go' do it now unless an outhouse does not bother you". True story.
Yes, the Subject To method is perfectly legal everywhere even where you are. I understand your situation, read the posts here ask questions, this will help you find that house for you and your family. I know you are just working folks, looking out for your family, so if I can help just let me know.
Now, Duran brings up a good point next time you see your Accountant or Tax Attorney, the first thing to look for is to see if he has indoor plumbing, this should give you a clue as to how good he is.
John $Cash$ Locke
John...
Do you know of any ''bird dogs'' in my area who would know of anyone who might find the ''subject to'' program attractive??
Also, there may be some properties here in Maryville you might find interesting ''Mr. Investor God''!
Thanks!
-Colleen
Colleen.
Always considered myself just a poor farm boy from Indiana trying to make a living in the big city.
I will put the word out to my students in your area to see if they can give you a hand.
Please private e-mail me here at TCI with your e-mail address so I can have them contact you.
Talk soon,
John $Cash$ Locke