So, i found a friend that is dumping a property of his and i need to get a loan for an amount way under 50K. Where do you think my best bet would be to get a loan, i have never done this before for another property but cant pass this up.I am guessing its the amount for a car loan but just extended for many more years. I have a mortgage now, owe 178K on it,I make 50-60K a year. Any thoughts? Any advice would be great.
What is the property?
First ask yourself why is he dumping the property? Does he know something he’s not telling you about it? Look at it on Zillow.com and get a ballpark figure of what the properties around it are worth or sold for! Bank is going to ask for an appraisal!
Where is the property?
In my opinion, making 50k a year and currently owing 178k, I would be making double mortgage payments instead of taking on more debt. But in today’s day and age that’s just crazy talk. If we aren’t in debt up to our eyeballs we wouldn’t know how to live. That being said…how about the bank where you cash your check?
Focus paying off your first property.
“Wailord”
1979 17’ Montauk
90 Johnson
Wilderness Ride 115
In todays economy and elections so volatile the last thing i’d be looking at would be more debt, would instead be trying to shed as much debt as possible for the next year or so… Ask yourself ; what if ??? my 2cts
George McDonald ; Board Member ; MAD Charleston
[http://www.militaryappreciationday.org
When you see “Old Glory” waving in the breeze, know that it is the dying breaths of our fallen hero’s that makes it wave.
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Your post is pretty vague. “way under 50k”, “property” (what is it, land?) “I am guessing its the amount for a car loan” (won’t he tell you how much he wants for it?) I’d be pretty uncomfortable taking on more debt if I made 50-60K and already had 178k in debt. I sure would not be taking on any more.
“Apathy is the Glove into Which Evil Slips It’s Hand”, but really, who cares?
I think im starting to see everyones point. It just seemed like such a good deal…its on Johns Island about a mile off of a busy road. Guess there has to be a good reason for selling a lot for the price of a decent cheap car. More payments on my house sounds better.
I agree with everyone else. With your income to debt ratio, I wouldn’t take on any more debt. The bank may not even let you. I’ve spent the last 5 years getting us out of debt. Completely. It sure feels good and I sure sleep better at night. All that being said, a credit union would probably be the best place to borrow.
Capt. Larry Teuton
Swamp Worshiper
quote:
Originally posted by MyHooker111I think im starting to see everyones point. It just seemed like such a good deal…its on Johns Island about a mile off of a busy road. Guess there has to be a good reason for selling a lot for the price of a decent cheap car. More payments on my house sounds better.
For the price of a cheap car? How big is the lot? Something sounds a little off in this… but for the price of a cheap car, I’d think you could swing it on a low interest rate card better than a signature loan at most banks if you wanted to keep it simple and turn you money quick. Or hopefully have enough in savings. If you buy it and plan to hold it for a while think of what property tax will run you and is it a sound investment over time? No ones making more land.
when you say a cheap car, I’m only thinking in the 4-8k range.
“If Bruce Jenner can keep his wiener and be called a woman, I can keep my firearms and be considered disarmed.”
Tell us more about the property. Acreage? Water? Etc
You can also look at the zillow history and see what it was bought for in the past.
Go to charlestoncounty.org and look up the address if your friend gave you one. That way you can see what it sold for and what it is worth. It also tells you the size of the property.
16’ Bonito 65 Johnson
As several people have mentioned, I’m all about paying down debt. That being said, if you truly buy at the “right” price, that property can 1) provide a source of residual income as a rental and 2) provide you with an asset that could be leveraged if needed (as you should have instant equity if you buy right). I’d do a full cost analysis of the property and develop a plan based on a WORST-CASE SCENARIO. Real estate’s the best investment there is, if you do it right.
“I’m not a hundred percent in love with your tone right now…”
The rental issue was my thought, that way Im not investing too much up front. It has a dilapidated trailer on it but was scared to look inside to see if worth salvaging. The lot is almost an acre on a quiet street but thought of slapping a small single wide on it and rent it out for 800 or so a month. There is water, power pole needs updating and the only drawback is septic. Hoping that wont be an issue with a new tank or anything. They are wanting 20K
For 20K, put it on a credit card!
Dont own a single one, so dont owe anyone. My only expenses are one car pmt. and 1200 on morgage. I belong to a federal credit union, thinking i could get a loan putting 2K down, and payments would be around 150 a month.
quote:You asked for thoughts. If it's too good to be true, it's to good to be true. What are the zoning laws?/grandfathered to buy new trailer?/replace septic system?/neighbors? If everything is good, the credit union should cover it or get a cosigner. You got to get the trailer too, but, the tax write-off on rental property helps counter the costs. Then all you gots to do is deal with your tenants...what you going to do when the rent is due and grandma needs to get new teeth?
Originally posted by MyHooker111Dont own a single one, so dont owe anyone. My only expenses are one car pmt. and 1200 on morgage. I belong to a federal credit union, thinking i could get a loan putting 2K down, and payments would be around 150 a month.
I would look around in that area and see what other lots are going for. If the rest of them are selling an acre for $40K, then it’s something I would consider. If the rest of them are going for $30K or less, then it doesn’t seem like a super deal to me. Notice that I didn’t say “$20K or less”. In other words, it’s not a “deal” if you are getting it for the same price as everyone else. Also, at this price point, unless you are going to make at least 50% on it, it doesn’t seem worth it to me.