Rentals Vs Coop
I am in thinking of buying a high rise which has 60+ apartments in a descent area, however the numbers from the rentals are no great. Does any one have an idea how to proceed to sell those units as Condos or a Coops.
Newbie here. What is SCB?
JeanMarie
Jean Marie,
SCB is a seller carry back or seller second.
I just obtained a mortgage for 75% of appraised value from a small local bank on an 8 unit apartment. The seller is holding the 25% second PLUS giving me an 8K credit at settlement. I will be getting a check at settlement.
I have found the small banks to be more flexible and want to try to keep community lending in house.
Hope this helps! Good luck!
FYI I have found several up to 80% LTV some will even allow 10% SCB. Which means that I will only have to put down about 10% of my funds.
I see I see. I am learning so much on this website.
JeanMarie
I see I see. I am learning so much on this website.
JeanMarie
I have financed two properties with KC Capital. The first was with 20% down on my part and I recieved a 5.8% rate. No Balloon! I am so tired of damn Balloon's. The second I took advantage of a Seller Second of 20%. KC Capital offered another 75%. The rate was a good bit higher 8,.5%, but the rate on my second was so low it almost evened out, not to mention I only had to put the 5% down.
Check out:
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=467
You feel lost when you call an agent............who cares? Call Anyways. Call dozens of agents about dozens of properties. You don't even have to tell them your name or phone number (dial *67 and it will hide your phone number from them).
After every call, if they use a term you didn't understand, look it up and find out what it means and why it's important.
Find out what cap rates are in your area and compare properties based on cap rates.
Where did you get your loan info??? 4.5% is very low, and will only go up. Not bad if you're planning on selling in 2-3 years, but bad if your going to hold it.
It's Due in 5 years....see above. Don't do that to yourself if you're planning on holding it.
The laundry income was probably included in the numbers you provided. You need to educate yourself before you start writing checks. Learn about apts and learn about your area and market.
To me, the expenses look low, but I don't know your area.
Looks like a pretty average deal to me at first glance.