Real Estate Help

[Poimen]

I have found our dream home!

It's in need of exhaustive repair (mostly minor) and remodeling. We are fine with that.

It's an early 1900's antibellian-esque home. It has at least 10 foot ceilings throughout, original base, trim, and crown molding work, many original doors, including nine footers, and original mahogany stair case from ascending all the way up to the attic.

It is currently not liveable (the kitchen has been gutted and not replaced).
None of this is a problem for us as my Father is a general contractor and I've grown up around construction work.

However it may cause problems loan wise, requiring us to seek a rehab loan through typical traditional loan venues. They are much harder to qualify for. And my credit ain't great to start with.

They are asking 48,000.00 for it. I am willing to give it, but thinking of offering 45,000.00 just to save a few grand. I have not paid for an appraisal myself, but the owners have only had the property two years. The bank that financed them appraised the property at over 70,000.00 as it sets then.

I'm thinking if I could just secure the 45,000.000 to buy the home I could then refinance for the value of the property to make it liveable and do basic and initial repairs remodeling with the extra 20,000.00 +

MY question is where do you go, and who do you talk with about an idea like this? What agency do this kind of financing?

Does anyone have any suggestions, advice, or experience?


Thanks in advance for any help.

[pastorables]

MY question is where do you go, and who do you talk with about an idea like this? What agency do this kind of financing?

Does anyone have any suggestions, advice, or experience?

Chris,

First, let me bring up the issue of wiring. Wiring in older homes can be faulty and to replace the wiring throughout would be your most expensive task from my limited understanding.

As for loans, I would recommend checking Wells Fargo Bank and/or Chase Bank. These national banks tend to go the extra mile to help the borrower get into a loan. We were able to get into a Chase loan with no money down.

pa

[Poimen]

MY question is where do you go, and who do you talk with about an idea like this? What agency do this kind of financing?

Does anyone have any suggestions, advice, or experience?

Chris,

First, let me bring up the issue of wiring. Wiring in older homes can be faulty and to replace the wiring throughout would be your most expensive task from my limited understanding.

As for loans, I would recommend checking Wells Fargo Bank and/or Chase Bank. These national banks tend to go the extra mile to help the borrower get into a loan. We were able to get into a Chase loan with no money down.

pa

Thanks PA,

Wiring -- yes, my brother and I are going to check wiring, skeletal work, plumbing, etc. this evening. I did notice though that modern wiring seemed to exist through the house. I didn't look behind every outlet mind ya, but were wiring was noticeable it was modern. Same with plumbing.

Thanks for the bank ideas. Sounds like a positive lead.

[dolfan]

Chris, I'm PMing you a contact.

[Dr. Ron]

You won't like this post......does the title of the movie "money pit" mean anything to you......before you proceed with this , rent that movie.

Whatever you think it will cost you to remodel that house....double that amount and then add 10 percent.

I have rehabed many houses and am doing one right now......you may have found a real gem....but my guess is that if the previous owners are ready to "fire sale" the house, you may be in for too many surprises/

You can actually build a nice "reproduction" of that home for less money and less headache.

I have a member who is into her 100 year old home for twice the appraisal...now she has no choice but to stay...

The number one thing to check for !!!!! MOLD!!!!![ If you see ANY sign of mold forget it quickly and move on!!!!!!

Now , go have fun with your dream home and pray it doesn't become a nightmare.

[Poimen]

I hear ya Dr. Ron

Those were the first words out of my wife's mouth. ha ha!
Of course after spending about 2 hours going over the home and property yesterday she came away as dreamy eyed as myself.

I've looked at the house twice, and my brother (a contractor) came and looked at it with me yesterday. Wiring and plumbing is updated. No mold. No major damage, no rot to speak of (only a few facial boards, and the ends of a few rafters. Just cut and scab on stuff).

I have since found that the house was originally erected in 1896! The maid house and the butler, though not liveable are both still standing on the property.

Met the owners, they are just financially stretched and do not have the time to fix it up. Their business is keeping them on the road and mostly in south Alabama.

The house appraised two years ago, before any updates, at 74,000.00 as it set.

My problem is credit, I have none to speak of. I'm not sure if it's strong enough/established enough to get my a loan on my own.

We really want this house. Of course, the Lord's will be done first and foremost, but outside of that, please pray with us for God to make a way for us to secure the financing needed to purchase this home.


BTW, it rained while we were there yesterday, no leaks!

[pastorables]

I have since found that the house was originally erected in 1896! The maid house and the butler, though not liveable are both still standing on the property.

Wow! Could this be a "Bed & Breakfast" project?

[Poimen]

We have thought the same thing!

[Poimen]

btw, the owners tell me that when they had it appraised the estimated amount once refurbished was over $400,000.00

Of course, I would never sale. But I would love to have a property that could be a family legacy and pass down through the years.


And, a lower lot of the original property (now adjoining) has a church that can be purchased for an additional $30,000.00

There is over 2 acres with the house now. If we decided to buy the church then their would be 3 acres.

I'm gonna try and get some pics we took up on here. I want you guys to see the potential this home has.


I don;t know, I REALLY< really, really, want this. But if God doesn't give it to us we will (by His grace) be content.

In the mean time I'm gonna share my hopes and enthusiasm with you all.

[Poimen]

Here's a couple of ariel shots.

It's the large brick home near the center of the picture.

[one love]

You won't like this post......does the title of the movie "money pit" mean anything to you......before you proceed with this , rent that movie.

Whatever you think it will cost you to remodel that house....double that amount and then add 10 percent.

I have rehabed many houses and am doing one right now......you may have found a real gem....but my guess is that if the previous owners are ready to "fire sale" the house, you may be in for too many surprises/

You can actually build a nice "reproduction" of that home for less money and less headache.

I have a member who is into her 100 year old home for twice the appraisal...now she has no choice but to stay...

The number one thing to check for !!!!! MOLD!!!!![ If you see ANY sign of mold forget it quickly and move on!!!!!!

Now , go have fun with your dream home and pray it doesn't become a nightmare.

Guess it depends on where you live and the value of the land itself. I agree make sure you know a lot about the property but hey I say good for you. All investments take risk but buying a house is about the safest AS LONG AS IT IS NOT A MONEY PIT.
Chris there is a type of loan used for this purpose and I cant remember the name of it....it is made for exactly what you are trying to do i will check for you.


Here is a good idea though , Pay the money and hire an inspector and let him look at it
Congrats

[Poimen]

A few more pics...

[Poimen]

a few more still.

[pastorables]

Wow! Only $48,000? That seems almost too good to be true on that home. Is it haunted? Is it in a bad neighborhood?

What is the square footage?

pa

[Poimen]

Wow! Only $48,000? That seems almost too good to be true on that home. Is it haunted?

According to local legend it is.

Is it in a bad neighborhood?

No -- just a dead, very poor neighborhood.

What is the square footage?

It's listed as 3500 square feet. But I don't think that counts the attic or basement. There's probably 4500 square feet, easy.

Like I said, it's my DREAM home!