Americorp Real Estate
Brokers Associate, e-PRO
Good answers here and all are relevant.
The most prevailing is that more likely than not you will need to pay cash for this property & second most prevailing is work with a buyers agent. Let him/her do the leg work for you.
Your buyers agent is at no cost to you and he/she can save you a "boat load" of time, energy & efforts, not to mention the expertise you acquire.
Just a thought...you may want to consider a 203k loan, not sure it will work due to the fact that the asking price is too low to qualify for a "conventional loan" but perhaps with the repairs added in it just might. Talk to Mary McElree @ Wells Fargo, she specializes in these types of loans.
Please know that this property is likely to be sold only in a "cash" transaction. Based on my experience working with buyers now trying to procure properties in the $ 10,000 to $ 40,000 range, I have found that it is virtually impossible to get loans, & 100% cash deals prevail. Most buyers are unable to get the financing they need from banks due to state lending laws and regulations preventing closing costs from exceeding 2 or 3% of the homes value. Please know that these regulations were put in place to prevent lenders from charging the people extra fees for larger, more expensive transactions, however now it prevents most banks from doing these kinds of loans. With that said, another option you may explore the possibility of requesting a small personal loan not mortgage from your bank. I am not sure what the requirements are for these kinds of loans, but you might be able to work something out based on your assets & collateral.
Loans mature in 6 to 12 months.
If you had a partner with cash to buy and repair, your chances to buy a 2 flat for 20k would be much better.
If you are a wholesaler who actually has no money to complete this deal, you will be lucky to even get it under contract.
If you want to further discuss call me.
You could search the entire MLS on my website if you are not ready to work with a Real Estate Agent yet.
the property,negotiating the price for you, and the financial terms that apply to purchasing this building.
Deborah Bergthold-Smith Classic Real Estate 708-267-5552