I want to know if anyone has a SFR or a duplex that they are listing/selling currently in the Los Angeles area. If you already have renters then that's a plus! Price range needs to be 500k-650k and the ONLY way my buyer is willing to purchase the property is if your seller is willing to give closing costs back. Anywhere from $30,000-$35,000. If anyone is interested please PM me and we can talk further by phone. Buyer is willing to pay a little over asking price and she is VERY SERIOUS. I have been looking myself thru the mls listings but I am having a hell of a time with agents willing to give that much closing costs back. Thanks in advance. Also 2.5% - 3% commission is greatly appreciated.

 

Good luck with that I find it hard to have a seller give up that much in closing costs. Does your buyer have no money to put down?

 

Rick, can you recommend a trustworthy realtor for the South Bay Area, and also Pasadena & Cerritos. Thanks Z needs her own private garage soon

 

Desiz, if you want to buy a house I can help you. I have gotten forum members loans and into homes already

 

I work the entire Southbay area. Mostly Commercial, (Apartments, Strip Centers, Land etc.. But $35K is a lot to ask for closing cost. Good luck

 

well my business is located in northern california so i'm sure its totally different down there. how much would i be able to get for my buyer?

Buyer is going to buy the home with no money down. she just wants to rent it out. See if the house is selling for $550k and the comps are at $575k, then i can ask $575k for the home with $30,000k back. that way the seller gets $545k instead of $550k. This is very possible and I have done transactions like these up here in Northern California with no problem. I think most agents down there are just scared when you say that big of an amount.

 

If I was the seller I would be worried about taxes on the sale of my property. Why get taxed more??? just to give money back?

You do know that she is not going to make money from a duplex. She is going to be running negative and paying out of her pocket just to pay the mortgage. Why does she want a duplex??? Doesnt make sense as an investment

 

2-4 units do not pay for themselves. Unless you come in with a big downpayment

 

or if it does then I am buying it

 

well depends on if you get a good deal on one. say you buy a duplex for 550k, with no money down, payments for both the first and 2nd will be around $3500. (not including taxes & Insurance). now if you rent out both units for a total of say $2700-3000 then your negative by a few hundred dollars. However if you get closing costs back, say $25,000, then you have the money to make the difference in the payment for close to 2 years. Now what I have clients do is have them refinance it in about 6months - 1 year and get them on a pay option program and drop their payments by almost half! That way they don't start paying out of their pockets and just let the loan neg for about 1 or 2 years. Then they can sell it for a good profit OR keep it OR pull cash out. The way the market is that most homes go up in value over time. Maybe not at a huge appreciation rate as before but still it will go up steady. Does that clear up any concerns?

 

Interest Rates Going Up??? How much more can prices go up? Pay option loans. There going to sell there property as a negative.

And you will never get $1500 for each unit unless both units are 3BR/2BA. and at a price of $550K you will never find it here in LA. Sorry. Maybe up north or somewhere in the ghetto but you will never get the rent

 

I know the loan balance will go up BUT you figure the value will go up as well. But I see your point and concern. it's a risk but that's how you make money and lose money as well. If it was a 100% sure proof, everyone would do it.

 

Dude prices are stagnant here now, places sitting on the market. With interest rates on the rise, expect a decrease in prices. Your buyer is an idiot. With the inflated rates today in SoCal (doubled over past 4 years) there is no way they can rent it for the payment. Property taxes are huge too, figure $500 a month. That doesn't include insurance, fixes they will have to do on their duplex etc. That is a money problem waiting to happen. Good luck though. Tell your buyer I have some swamp land for them at half the price!!!