Doing pre-loan assessment is very simple.
Just like Bob,just liase with the Banker.
Okay back to this deal,Below is my calculation
If it is $500K or $600K, can CLOSE eye and buy.
Purchase Price=$800K
Loan 90%=$720K
Monthly installment =$3600
Developer Rebate=18%
No DIBS=Have to pay interest during construction, about 4%
Since Tuck mentioned can be reimburse back, then this can be void.
Otherwise, the real money back to pocket is 4% (32k) only.
$32K to pocket in, it can last only for 8.8 months after key delivered.
Pros:
1) No Money down (Attractive to me)
2) Interest reimburse scheme (Bonus point added to this deal)
Cons:
1) High total price (although per square feet is cheap)
2) Unfavourable Location,althoug there are few more tower to be launch
3) The area is flooded with condo and a lot of construction going on.
Now my question for all to ponder:
1) Who will be our market pool purchaser after 5 years? Say we will be selling 1.2M?
Since it is for flip,so required to consider this.Is it easy to sell or not?
2) Any comparison with the surrounding price (per square feet)?
3) Do we have worst case plan?If we expecting 50% appreciation, we should be able to sustain if price drop 50%.Plan for the worse case
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