HELLO DUTCH I THINK IT'S A NICE DEAL YOU PUT TOGETHER. PEOPLE WITH BAD CREDIT OR REALLY NOT BAD PEOPLE EVERYONR NEEDS 2ND CHANCE. YOU CAN DO AN OWNER FINANCE DEAL ALSO. I'LL BUY THE NOTE FROM YOU AT CLOSING ALSO IF YOU WANT ME TO WITH THAT MUCH CASH DOWN. O'NEAL JUST SEND ME ALL THE INFO ON THE PAYOR, PROPERTY, PAPER. THANKS. O'NEAL
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Dutch <falconxp@yahoo.com> wrote:What is lending ones' credit worth?

Hypothetical:

Have a buyer with 15K cash, but crappy credit.

I buy a 100K house for 95K, plus 4k closing costs

I instantly sell to buyer for 10% markup, 108,900 (99k + 10%). Minus his 15K, I finance 93,900 at 10% on 30 year am, 3 yr balloon. His P&I is 817.00

I use his 15K to pay my 4k closing and use the other 11k as my down, financing 84k a 6.5% on 30 yr fixed. P&I is about 553.00.

So, I've got 264 a month positive, plus 9,900 equity srpead (108,900 minus my cost 99k).

If he waits the full 3 years to refi, I make 19,404 (9,900 + 9,504). Minimum profit after 1 year is 13,068 (9,900 + 264*12). And I'm fully protected by having title to a 100K house that I have absolutely none of my own cash into. Worst case I have to foreclose and get the house back.

For discussion sake, is this a good deal or not for an investor? Please, let's hear your thoughts. If not, what would make it a good deal?

Dutch







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