Condos also tend to appreciate a lot more slowly than SFHs.
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Cheapest sfr in my area is prob 2.5 so that’s not an option at all for me at 7%. But I agree condos def do appreciate much slower bc of the fees. Sfr here has tripled in 5 years in many places. Waterfront even more.
Last crash lots of 1-2brs here were selling for under 100k bc people thought the associations were gonna bankrupt. Those people that bought then did very well as they’re all 500-800k now.
Hopefully your complex has a good HOA and/or community members. My last place was a condo and it was run decently. Unfortunately, the members don’t know basic accounting and got all up in arms after reading the association’s balance sheet incorrectly, and turned that into a campaign to overthrow the board because they thought the HOA fees were too high. First thing the new board did was email blast everyone to conserve water or else they were going to have to raise dues…
Glad I’m out of that nightmare.
I agree gas looks cheap but those ETFs seem like such a scam - they always just go down - small gain, down down….
Boil and kold is for day trading as they’re leveraged. You don’t hold that long.
Paa and ET benefits from high nat gas pricing and has a great dividend.
Ung if you want to just pretty much buy gas can always hedge with puts if worried about the decay
Makes me think I should just keep buying puts for BOIL
This challenge has proved to be a blocker for two different buyers, and I have now lost both offers, because they cant find financing. I had the idea to offer seller financing, and I’ve gotten a competitive offer from an interested buyer (3rd try). Have never really considered seller financing, but why not be the bank and collect on the interest? Would bring in the appropriate representation, but am I crazy for considering offering financing? Biggest concern would be risk management.
Talk to your lawyer about that. Seller financing can be tricky, you’ve got to have a good lawyer to ensure there are no possible ways you get fucked.
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Which is how people get in trouble, Self Financing means you also know how to repossess properly. I would stay away.
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There are companies that will do the amortization and collect payments and whatnot for you with seller finance.
What metro area is this is? Would it cash flow at current rents?
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It’s a winter seasonal community in southern Vermont.
HOA rules are not favorable towards rentals.
In initial discussions, my agent floated and got interest with a 50% down payment, and then the balance financed via either a 3-, 5- or 7-year balloon with a 30-year amortization schedule.
Collecting $40K in interest sounds pretty good.
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If I was getting 20+% down payment, I wouldn’t mind seller financing at all. I would also consider “lease option” with atleast a 10% downpayment and the tenants responsibility for the upkeep of the house until they can secure a loan.
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If you’re not allowed to rent it out, then sounds like you’re either selling for a steep discount all cash or you have to do seller financing unfortunately. If you do seller financing, use a company to manage the amortization, reporting to credit bureaus, sending out 1098s, etc.
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I sold a townhouse with an HOA, my lawyer told me to not even consider seller financing unless 40%+ down. She’s seen too many of those deals blow up and are just not worth it for anyone. This is in a more upstream market ($1 million+), perhaps it’s worth the risk for LCOL/MCOL areas.
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Offer is in that includes seller financing. They are requesting a 7-year balloon term which increases the total interest collected to $54K, on only a $100K loan. Definitely not leasehackrs. Seems kinda too good to pass up? Although I am expecting another offer which will most likely be cash, so delaying as long as possible.
Have you talked to any hard money lenders in your area who may have the funds or know an investor that would be willing to offer something agreeable for all parties? You walk away with your money, they get a loan all be it non standard, and it makes lemonade out of the situation?
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I’ve been trying to find a lender, but no success with the first two offers. My thought is I could always try to sell the note after it’s originated, will not be as much time pressure. But I just did an initial search on the buyers and I am less than impressed.
HML would likely not amortize for 30 years. Investors are likely out since renting is not allowed…
@z0lt3c Have you tried going to the condo board to try to convince them to either get flood insurance so that you can sell or change the bylaws to allow rentals? This would impact the property value for everyone on the board. You’re kind of stuck with this one. Values of unwarrantable condos are significantly lower than warrantable condos because they essentially can’t be financed traditionally.
You are trying to find a lender for a person BUYING your place? Why
Maybe click on his name and read all the posts that he has in this thread to get context on his situation first?