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Ok all you rich property owners... need some advice.

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Ok all you rich property owners... need some advice.

Old 04-08-2012, 01:02 PM
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Default Ok all you rich property owners... need some advice.

just kidding about the title...but I would like some advice from people who play the real estate game etc etc.

A little over a year ago my grandmother passed away, her 2 story house is in a nice town in Fairfield County CT with 1/2 of acre of land. I had moved in with her 5 years prior when she developed some health issues in order to help her live and keep the family happy (she would not ever pay anyone to help her, so in exchange for room and board I helped her with everything she needed) it worked well for her last five years but... sadly she passed away as she fell asleep on her 98th birthday.

What's the point??

Fast forward six months later --> The family wants me to buy the house. Zillow says it's worth 426k, 3 different appraisers came and all put the value at 430k 432k and 440k (I guess it's not that precise??)

ANYWAY, at first the family offered 390k. The home needs about 50k before it's really up to today's standards (built in the 40s). I'm just a single guy that's apparently SLIGHTLY above the average salary (low 50's) - I thanked them for their offer but had to decline.

Today at the Easter meal table my uncles made the offer of 150k. I was surprised to say the least and said I would thankfully love to buy at that price.

My question to you = Where should I go to do this quickly and get the best rate possible?

I've got a credit score of 810 and with the boat and a car owe 18,000 dollars on a 1.9% loan. That's it. No credit card debt.

Where would you start? I'd like to cut out as many people as possible here.. My uncle will sign whatever is needed...

What's the process here?
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Old 04-08-2012, 01:10 PM
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You have already cut out the most expensive people....The realestate agents. Use a lawyer, most will draw up a simple realeastate contract and closing for less than 1,000 and choose a title agent. You will need to contact a mortgage lender. It will still cost you money. Good luck

Steve
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Old 04-08-2012, 01:16 PM
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Originally Posted by sac56fire View Post
You have already cut out the most expensive people....The realestate agents. Use a lawyer, most will draw up a simple realeastate contract and closing for less than 1,000 and choose a title agent. You will need to contact a mortgage lender. It will still cost you money. Good luck

Steve
Yeah I've been all over tons of different websites. My preference would be to do it through PENFED but I'm just not sure how the whole process goes down.. I realize it'll cost me some money..
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Old 04-08-2012, 01:18 PM
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Sounds like a great deal. Just be sure there is no alterior motive by family and be careful of resentment after the fact. If it were me and that price was offered id do it in a heartbeat. Just remember that if you sell at a hefty profit too soon (by too soon, I mean by your fmily's standards) there will be resentment. Sounds like everyone just wants to keep it in the family.
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Old 04-08-2012, 01:24 PM
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Originally Posted by Welshtrustee View Post
Sounds like a great deal. Just be sure there is no alterior motive by family and be careful of resentment after the fact. If it were me and that price was offered id do it in a heartbeat. Just remember that if you sell at a hefty profit too soon (by too soon, I mean by your fmily's standards) there will be resentment. Sounds like everyone just wants to keep it in the family.
Yeah, I'm thinking 5 years at the minimum would be how long I stay there, really depends on what it comes out like after all the work.

The reason they want to sell so cheap, I believe, is because right now they realize that the house isn't going to sell for anything near 440 and it probably wont sell at ALL in this market. There are nicer houses going for 340 with more land and more sqft at the moment. My uncles (and father) are all pretty well off and comfortable at this point. I think it's more of a gift to me, getting a house that needs work off their minds and they'll all end up with 50k each (from the house...and they can close out her savings /etc and get another 100 or so.
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Old 04-08-2012, 01:35 PM
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You said appraisers came in around 435k average - then said its not worth 340k and/or wont sell at all...

Call a local real estate broker and tell em your selling it as a trustee for your grandmother and want a broker... They will tell you what its worth and you can go from there...

Good luck
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Old 04-08-2012, 01:38 PM
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Hopefully the family recognizes what you did for her!!!!!! You're a good man.
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Old 04-08-2012, 01:40 PM
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Originally Posted by triplenet View Post
You said appraisers came in around 435k average - then said its not worth 340k and/or wont sell at all...

Call a local real estate broker and tell em your selling it as a trustee for your grandmother and want a broker... They will tell you what its worth and you can go from there...

Good luck
I should amend that, I don't think it will sell in the next six months to a couple years. 5 years down the road? Sure...

The reason I think they came down to 150 is because they want it off their plate NOW and they realize that they needed to come way down for me to be able to afford it.
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Old 04-08-2012, 01:43 PM
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Originally Posted by thajeffski View Post
I should amend that, I don't think it will sell in the next six months to a couple years. 5 years down the road? Sure...

The reason I think they came down to 150 is because they want it off their plate NOW and they realize that they needed to come way down for me to be able to afford it.
Understood... Still,,,, call a local real estate broker - say you want to list it - they will come appraise and give you some local comps.... If appraiser said its worth 430k then it is - they dont mess around anymore ...
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Old 04-08-2012, 02:23 PM
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Originally Posted by triplenet View Post
Understood... Still,,,, call a local real estate broker - say you want to list it - they will come appraise and give you some local comps.... If appraiser said its worth 430k then it is - they dont mess around anymore ...
I`m sure the broker will enjoy being stroked. The lender will require an appraisal.

Get a good building inspector. Rotten sills or similar will add up.

You`re a fine relative and it is nice to see this being rewarded.
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Old 04-08-2012, 02:32 PM
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[

I use a real estate lawyer I met to close so far three properties averaging 325k and he charged me an average of about $350 for each one. Best financing you can usually get is through a credit union but if your not a member of one talk first where you do all your banking. You doing the closing with your own real estate lawyer you shouldn't have hardly any closing cost and should get a loan of not more than 4.25%. Good Luck.....
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Old 04-08-2012, 02:33 PM
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Originally Posted by Gator56 View Post
[

I use a real estate lawyer I met to close so far three properties averaging 325k and he charged me an average of about $350 for each one. Best financing you can usually get is through a credit union but if your not a member of one talk first where you do all your banking. You doing the closing with your own real estate lawyer you shouldn't have hardly any closing cost and should get a loan of not more than 4.25%. Good Luck.....
Cool, thanks, I'm a member a Pentagon Fed Credit union and my local one here in town.
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Old 04-08-2012, 02:34 PM
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Originally Posted by gofastsandman View Post
I`m sure the broker will enjoy being stroked.
and your point

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Old 04-08-2012, 02:41 PM
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Before you jump into this, check the property taxes on the house (assuming CT has such a thing). Whatever the taxes are now, they may go up in the future- make sure they are affordable for you.

Since this is not an "arms length" transaction, assessors around here would not adjust down the assessed value based on the price you pay.
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Old 04-08-2012, 03:17 PM
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Originally Posted by yarcraft91 View Post
Before you jump into this, check the property taxes on the house (assuming CT has such a thing). Whatever the taxes are now, they may go up in the future- make sure they are affordable for you.

Since this is not an "arms length" transaction, assessors around here would not adjust down the assessed value based on the price you pay.

It's 6k, 500 a month. I'm ok with that. I just will have to eat pasta every night.
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Old 04-08-2012, 04:22 PM
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Why don't you just have your family hold the mortgage....if they will. Have an attorney do a contract that states what happens if you default on the mortgage and your fathers/uncles recourse in the event they want to foreclose on the house. Anyone, including the attorney, can get your ammoritization schedule so you and they know how much of each payment is going towards principle and interest. Every year you claim the interest you paid on your Schedule A if you itemize and they will claim the interest you pay them as income. You giving them 4% interest is a good deal for them (better than any guaranteed fixed rate investment will give them) and the 4% will probably be a little lower than the rate you would get on a mortgage.
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Old 04-08-2012, 05:03 PM
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The advice seems to be all over the place, just like the misleading thread title.

I don't see any advantage to getting a broker involved (my family was in real estate all my life), there's no upside.

You need to talk to a mortgage broker, the credit union sounds like your best bet. Usually, the lender does the appraisal (you pay for it) and will require an inspection (you pay for it). Once approved, you need a real estate attorney. The attorney will do a title search and arrange for title insurance and schedule the closing.

It's a slam dunk and fairly simple.
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Old 04-08-2012, 05:04 PM
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Originally Posted by runabout View Post
Why don't you just have your family hold the mortgage....if they will. Have an attorney do a contract that states what happens if you default on the mortgage and your fathers/uncles recourse in the event they want to foreclose on the house. Anyone, including the attorney, can get your ammoritization schedule so you and they know how much of each payment is going towards principle and interest. Every year you claim the interest you paid on your Schedule A if you itemize and they will claim the interest you pay them as income. You giving them 4% interest is a good deal for them (better than any guaranteed fixed rate investment will give them) and the 4% will probably be a little lower than the rate you would get on a mortgage.
Hmm that sounds like a most awesome idea.

However, I think the uncles are in it for the lump sum quick payment. It's weird because they are both pretty wealthy.....I'm not sure what their motives are, but the deal is 150k now.
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Old 04-08-2012, 05:08 PM
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get a roommate to help with payments? preferably female and built like a brick chit house and will clean as well
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Old 04-08-2012, 05:10 PM
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Motives are irrelevant. If the deal is $150K on a property in today's market thats worth $340K or more, why the concern? I think runabout's idea is a good one IF and only if you cannot get conventional financing. I don't like the idea of being in bidness with my friends and family-keep business and personal life far apart. Good luck...

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