PLEASE HELP MEEEE!!!
Hi to everyone,
I finally decided to get involved in real estate, and after some marketing I found a nice property in Illinois, that has positive cash flow, about $3500 a month and the price of the property is $250K.
Please, advise me is this a good deal? If it is, how can I get a financing, cause I am kinda short on cash and cant put any down.
Any advices will be highly appreciated.
My email: misswildrose777@aol.com">misswildrose777@aol.com
Sincerely,
Diana
Hi Diana,
Without more information, I can't say if this is a good deal by your standards, but based upon what you say here I would pick this property up today Subject to and resell immediately on a Land Contract/CFD/AFD and go from there.
Let us know if this fits
John (LV)
Will it give you $3500 a month AFTER you pay all your expenses, allocate for capital improvements, and pay your mortgage?
If so, it sounds like a great deal. Who told you it would give you $3500 per month? A realtor? Seller? For that price it sounds overly optimistic (like they're trying to sell something!) And if they "know it's a great deal" why aren't they selling it for more?
If you calculated that, how did you arrive at that number?
I agree with the post above. We don't know anything about the property. Tell us:
-How many units?
-Gross Monthly Rents?
-Monthly expenses?
-Hows the area?
-What condition is the building in?
-Are you planning on buying and holding or doing something else?
-Will the seller be flexible in how he sells it?
As for financing,
-Do you have $80K of equity in your home or other assets (liquid or illiquid)?
-Money to pay down?
-how's your credit?
-Do you have a partner with money?
I'd recommend the book "getting started in Real estate investing" (thomsett) to get you started. Down to earth, and a good balance of handholding and not treating you like a fool. I think they sell it here on the site.
Give us some more info and we'll be able to give you much better opinions. Personally it sounds like they know something you don't. If there's an "amazing deal" that someone is trying to talk you into, it probably isn't that amazing. Most truly amazing deals are found after you do your due dilligence and can recognise them.
Look forward to hearing more about it.