For once, my real estate agent Prius gave me some good news. I told her to ask the seller’s attorney if he would be open to doing owner financing. She called me up and told me that the owner is open to negotiation on owner financing, but only after I’ve exhausted the mortgage option. Whew, thank goodness.
I know I said that I wouldn’t mind waiting until the end of the year to have 50k to put as down-payment on a big commercial property, and it’s true. But my first choice would be to buy PPC #3 with straight cash. That way, I can have the place renovated and fully rented out by July/August of next year with NO mortgage, and then start saving the money needed to buy the final property before retirement. Prius also gave me some interesting news. PPC #3 is next to another property, a 6-unit that will be going for sale soon. Ferrett Real Estate will have the listing. After I buy PPC #3, I could make the 6-unit my property Delta, so long as the price is right. While I don’t like the shape of it (it’s shaped like a regular house… for a 6 unit property, I like apartment buildings that have a rectangular shape), I do like the idea of controlling who lives next door to PPC #3. Landlords in Smalltown aren’t picky, so I doubt that the tenants they move into a 6-unit building will be the kind I would want living near my precious property Charlie. So right now, things are looking good.
With a green light on the owner financing, I really have to start saving as much money as possible until the closing. I’m now regretting paying all that money for my GMC Jimmy registration and my suspended driver’s license. That $500+ would be really helpful right now, and I’m sure I could have gone a couple more months driving unlicensed and unregistered as I’ve been doing for the last 3 years. But whatever, the money is paid. I’m holding off fixing the engine oil leak until April, maybe even May. I can’t take any big hits to the wallet until then. I emailed Marvin Wassle and Ross, asking them for an estimate of how much closing costs would be if I don’t go through the bank. Ross said anywhere between $2000 and $2500, while Marvin estimates it will be a little under $2000. I have about 30k right now and I’m trying to get to 31k by the end of February. In March I get paid 5 times, so I’m hoping to somehow get 34k near the end of next month and set up the closing date for March 25th.
I’ll go into the numbers in greater detail in a future post, but things are looking good. I’ll string the seller along until next week, when I’ll tell him through Prius that the bank rejected my application because my credit score was three points lower than it needed to be. I’ll have Marvin Wassle or the seller’s attorney draw up a contract where I purchase the property for 30k down and make payments of $2000 per month for 14 months or until the full payment is made before the 14-month period. I’m obsessed with getting this fucking property, but I’m very careful not to go overboard. The most important thing is for the seller to agree to my terms, without any shenanigans. If the seller tries to hardball me into paying something on top of the proposed $2000 per month, then I’m pulling out of the deal and will wait until the end of the year to buy something bigger with a mortgage. I’ve learned the lesson of never falling in love with a property available for purchase. PPC #3 is a great opportunity, but it’s not the only fish in the sea.
No comments:
Post a Comment