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View Full Version : A question for the real estate guru's!



Tremor Therapy
01-06-2006, 04:53 PM
Okay real estate guru's I have a question for you....
I am going to be relocating, my house has not sold as of yet, but one of the houses on my short list has decreased the price by 25%! The house has been for sale for 8 months, vacant for over 5 months, the owners have moved out of state, and even with a 25% decrease from the original asking price, they are realizing more than a 300% profit over the original selling price, and they just want it sold!
Now the question....should I take out a loan against invested retirement assets and buy the house with minimum down (say 3%), finance it at one of the crazy loan rates they offer (like one of those 1 year ARM 1% interest only loans), and just move. Or, should I hang tight, leave the assets where they are, and go the traditional route?
I ask because I would have to take out a large enough loan to cover the second house payment during the time period it would take for my original house to sell. I would use the proceeds from the sale of my house to pay back the loan, but would there be tax implications, or any other hidden issues that I would incurr due to the loan scenario?

Froggystyle
01-06-2006, 05:19 PM
My suggestion is to come down to El Cajon and take a test drive. You won't have any problems at all with taxes or anything... You can take the proceeds of the house and turn it into a big, fast, floating party... ;) Bring your avatar.

NashvilleBound
01-06-2006, 05:23 PM
Okay real estate guru's I have a question for you....
I am going to be relocating, my house has not sold as of yet, but one of the houses on my short list has decreased the price by 25%! The house has been for sale for 8 months, vacant for over 5 months, the owners have moved out of state, and even with a 25% decrease from the original asking price, they are realizing more than a 300% profit over the original selling price, and they just want it sold!
Now the question....should I take out a loan against invested retirement assets and buy the house with minimum down (say 3%), finance it at one of the crazy loan rates they offer (like one of those 1 year ARM 1% interest only loans), and just move. Or, should I hang tight, leave the assets where they are, and go the traditional route?
I ask because I would have to take out a large enough loan to cover the second house payment during the time period it would take for my original house to sell. I would use the proceeds from the sale of my house to pay back the loan, but would there be tax implications, or any other hidden issues that I would incurr due to the loan scenario?
Sounds like if you buy the house "traditionally" (30year) you would be strapped.
My suggestion would be to tie up the house in an escrow with the contigency of your home selling. Take all the funds and finance only what you cant afford to put in....all your funds....you will quickly recover your liquid assests but your 30 year loan will drag out a long time....and cost you many times the cost of the original home. If you can cash it out do so.... Whatever you do, DO NOT do one of those lame 1 year int only or 40 year loans...NO CREATIVE financing!!!!!!! We are over due for a correction....you will regrett it.
Just my .02
Good Luck!

SPECTRABRENT
01-06-2006, 06:52 PM
If you need think the house is a great deal do 100% financing (70/30, 75/25 or 80/20) than when you current house sells pay off the second. If your credit is good you will get a good loan(s)
I would not borrower from any retirement fund at this point to buy a house.
Good Luck,
Brent

KineticoH20
01-06-2006, 08:13 PM
If your fica is high enough go for a larger loan, rent your house out, use monthly's for the new larger loan. 10 years from now you will be a happy camper.

NOTALENT
01-06-2006, 08:27 PM
I think we need more pics of your avatar...that is probably one of the nicest asses I have ever seen...not to mention the hottest outfit ever!!!! :crossx: at least a name or website... :p

hoolign
01-06-2006, 08:34 PM
I think we need more pics of your avatar...that is probably one of the nicest asses I have ever seen...not to mention the hottest outfit ever!!!! :crossx: at least a name or website... :p
www.notalentreliesoninternetagain.com :D

NOTALENT
01-06-2006, 08:48 PM
www.notalentreliesoninternetagain.com :D
haha...hey...what ever works right...practice makes perfect... :crossx:

hoolign
01-06-2006, 08:53 PM
haha...hey...what ever works right...practice makes perfect... :crossx:
Just face south...just face south! :D

totenhosen
01-06-2006, 09:17 PM
Sounds like if you buy the house "traditionally" (30year) you would be strapped.
My suggestion would be to tie up the house in an escrow with the contigency of your home selling. Take all the funds and finance only what you cant afford to put in....all your funds....you will quickly recover your liquid assests but your 30 year loan will drag out a long time....and cost you many times the cost of the original home. If you can cash it out do so.... Whatever you do, DO NOT do one of those lame 1 year int only or 40 year loans...NO CREATIVE financing!!!!!!! We are over due for a correction....you will regrett it.
Just my .02
Good Luck!
i agree with what he said. Another option is if you haven;t put your house on the market yet (or take it off) get a HELOC against it and fully advance it. It will be ike giving yourself a bridge loan until you sell your house.