Subject: Re: Friend Needs Help Buying House - Advice?
Date: Tue, 07 Sep 2004 00:01:03 -0500
From: "John A. Weeks III" 
Newsgroups: misc.invest.real-estate

In article , Dan
 wrote:

> My friend needs help buying a house.  Unfortunately, his financing won't 
> be approved for a week or so; the house could be sold by then.  I will 
> NOT co-sign a loan so I am considering buying the house, charge him one 
> month's rent, then sell the house to him as he would have financing at 
> this point.  What is the downside to doing this besides potentially 
> being stuck with a house I don't want?  If there is any problem or big 
> costs I will have to pay for to buy and sell this house quickly?  Any 
> advice is appreciated.

Why can't your friend put in an offer contingent on financing?  This
is a standard thing to do.  In a hot market, some sellers will prefer
to accept offers from people who are non-contingent, but the market
is cooling off in many areas, so people should be anxious to get offers
right now.  Once you put in an offer, it is customary to not have to
close for 60 to 90 days.

If you buy the house, how will you pay for it?  If you have to get
a loan, you will pay big time closing costs, then your friend will
have to pay the same closing costs again.  Even if you pay cash,
you still have a few thousand in closing costs in most deals.  Then,
if you get stuck with the house, you will have to pay a typcial 7%
in realtor fees to sell the house.  This is a huge risk for little
upside.  Don't do it.

Are you working with a real estate agent or realtor?  I didn't think
so.  You need the help, assistance, and advice of a professional in
this case.  Go get an agent, and let them help you figure out how to
work this deal.

-john-

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John A. Weeks III            952-432-2708         john@johnweeks.com
Newave Communications                       http://www.johnweeks.com
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